Financial Survey: Johnson Outdoors (NASDAQ:JOUT) vs. Shimano (OTCMKTS:SMNNY)

Shimano (OTCMKTS:SMNNY) and Johnson Outdoors (NASDAQ:JOUT) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Valuation and Earnings

This table compares Shimano and Johnson Outdoors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$2.98 billion	3.03	$503.78 million	$0.37	27.81
Johnson Outdoors	$562.53 million	0.76	-$26.53 million	($3.87)	-10.62

Shimano has higher revenue and earnings than Johnson Outdoors. Johnson Outdoors is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Shimano and Johnson Outdoors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
Johnson Outdoors	1	1	0	0	1.50

Profitability

This table compares Shimano and Johnson Outdoors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	10.72%	5.93%	5.46%
Johnson Outdoors	-7.02%	-8.80%	-6.30%

Institutional and Insider Ownership

0.0% of Shimano shares are owned by institutional investors. Comparatively, 64.1% of Johnson Outdoors shares are owned by institutional investors. 28.0% of Johnson Outdoors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Shimano pays an annual dividend of $0.13 per share and has a dividend yield of 1.3%. Johnson Outdoors pays an annual dividend of $1.32 per share and has a dividend yield of 3.2%. Shimano pays out 35.1% of its earnings in the form of a dividend. Johnson Outdoors pays out -34.1% 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. Johnson Outdoors has increased its dividend for 11 consecutive years. Johnson Outdoors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Shimano has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Johnson Outdoors has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Shimano beats Johnson Outdoors on 8 of the 15 factors compared between the two stocks.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About Johnson Outdoors

Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving. The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing. This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors. The Camping segment provides consumer, commercial, and military tents and accessories; camping stoves; other recreational camping products; and portable outdoor cooking systems. This segment sells its products under the Eureka! and Jetboil brands through specialty stores, sporting goods stores, internet retailers, and direct to consumers. The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under Old Town and Carlisle brands. The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name. This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, and public safety units. It sells its products through websites. The company was founded in 1970 and is headquartered in Racine, Wisconsin.