Analyzing SMC (OTCMKTS:SMCAY) & Edenred (OTCMKTS:EDNMY)

SMC (OTCMKTS:SMCAY) and Edenred (OTCMKTS:EDNMY) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Dividends

SMC pays an annual dividend of $0.21 per share and has a dividend yield of 0.9%. Edenred pays an annual dividend of $0.39 per share and has a dividend yield of 1.9%. SMC pays out 22.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

1.0% of SMC shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SMC has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Edenred has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares SMC and Edenred’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMC	22.38%	9.26%	8.28%
Edenred	N/A	N/A	N/A

Earnings and Valuation

This table compares SMC and Edenred’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC	$5.38 billion	N/A	$1.24 billion	$0.95	24.53
Edenred	$2.50 billion	4.19	$288.95 million	N/A	N/A

SMC has higher revenue and earnings than Edenred.

Analyst Recommendations

This is a breakdown of current ratings and price targets for SMC and Edenred, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC	0	0	0	0	N/A
Edenred	0	0	0	0	N/A

Summary

SMC beats Edenred on 7 of the 9 factors compared between the two stocks.

About SMC

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.

About Edenred

Edenred SE provides digital platform for services and payments for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, a solution that allows employees to take time out for lunch at a partner merchant; Ticket Alimentación that allows users to pay for groceries in neighborhood stores and supermarkets; Ticket Regalo, a gift voucher; Ticket CESU, a human services solution; Ticket Plus Card, a solution that enables the purchase of staples, such as food and fuel; Ticket Welfare, which employees can use to pay for a range of services, such as access to sports facilities and solutions for their children's educational needs; Ticket Guardería for companies without on-site daycare facilities; Childcare Vouchers; Ticket EcoCheque, a solutions that encourages purchase of environmentally friendly products; Ticket Kadeos Culture and Ticket Cultura that are solutions for cultural goods and services. The company also offers mobility solutions comprising Ticket Log for light vehicle fleet management; Ticket Fleet Pro and Ticket Cargo for truck fleet management; Ticket Car for employees to pay for fuel and other business travel expenses; UTA Edenred for paying tolls, optimize routes, pay for roadside assistance and truck servicing, and for VAT reimbursement; fuel cards; and refund services for VAT and excise duties. In addition, it provides complementary solutions comprising corporate payment, invoice processing automation, and salary card solutions. Edenred SE was founded in 1962 and is headquartered in Issy-les-Moulineaux, France.