Std Lf PLC/ADR (OTCMKTS: JAPAY) and JAPAN TOB INC/ADR (OTCMKTS:JAPAY) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Institutional & Insider Ownership

0.1% of JAPAN TOB INC/ADR shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Std Lf PLC/ADR pays an annual dividend of $0.66 per share and has a dividend yield of 3.9%. JAPAN TOB INC/ADR pays an annual dividend of $0.49 per share and has a dividend yield of 3.8%. Std Lf PLC/ADR pays out 42.9% of its earnings in the form of a dividend. JAPAN TOB INC/ADR pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Std Lf PLC/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Std Lf PLC/ADR and JAPAN TOB INC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Std Lf PLC/ADR N/A N/A N/A
JAPAN TOB INC/ADR 17.70% 13.92% 7.64%

Earnings and Valuation

This table compares Std Lf PLC/ADR and JAPAN TOB INC/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Std Lf PLC/ADR $21.88 billion 0.58 $900.87 million $1.54 11.13
JAPAN TOB INC/ADR $19.09 billion 2.71 $3.49 billion $0.98 13.20

JAPAN TOB INC/ADR has lower revenue, but higher earnings than Std Lf PLC/ADR. Std Lf PLC/ADR is trading at a lower price-to-earnings ratio than JAPAN TOB INC/ADR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Std Lf PLC/ADR and JAPAN TOB INC/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Std Lf PLC/ADR 0 0 0 0 N/A
JAPAN TOB INC/ADR 0 0 0 0 N/A

Volatility and Risk

Std Lf PLC/ADR has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, JAPAN TOB INC/ADR has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

JAPAN TOB INC/ADR beats Std Lf PLC/ADR on 7 of the 12 factors compared between the two stocks.

About Std Lf PLC/ADR

Standard Life Aberdeen plc provides asset management services in the United Kingdom, Europe, North America, and Asia. The company offers investment solutions and funds; long-term savings and investment products to individual and corporate customers; and life insurance and savings products. It provides its products through institutional, wholesale, and retail distribution channels. The company was formerly known as Standard Life plc and changed its name to Standard Life Aberdeen plc in August 2017. Standard Life Aberdeen plc was founded in 1825 and is headquartered in Edinburgh, the United Kingdom.

About JAPAN TOB INC/ADR

Japan Tobacco Inc., together with its subsidiaries, manufactures and sells tobacco products, primarily cigarettes in Japan and internationally. It also distributes imported tobacco products. The company offers its tobacco products primarily under the Winston, Camel, Mevius, LD, Benson & Hedges (B&H), Glamour, Sobranie, Silk Cut, Natural American Spirit, Seven Stars, Pianissimo, Peace, HOPE, and other brand names. In addition, it engages in the research and development, manufacture, and sale of prescription drugs in the fields of metabolic diseases, viral infection, and autoimmune/inflammatory diseases. The company's pharmaceutical products include Riona tablets for the treatment of hyperphosphatemia, Remitch capsules for pruritus, and KAYEXALATE dry syrup for hyperkalemia; FUTHAN for injection, a protease inhibitor; ANTEBATE, a topical corticosteroid; CEDARTOLEN sublingual immunotherapy drugs; MITICURE House Dust Mite sublingual tablets; and Truvada, Stribild, Genvoya, and Descovy combination tablets for HIV. Further, it manufactures and sells staple food products, including frozen noodles, frozen rice, packed-cooked rice, and frozen baked bread; bakery products; and seasonings, including yeast extracts and oyster sauce. Japan Tobacco Inc. was founded in 1898 and is headquartered in Tokyo, Japan.

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