Head-To-Head Contrast: Wolters Kluwer (OTCMKTS:WTKWY) & Secom (OTCMKTS:SOMLY)

Wolters Kluwer (OTCMKTS:WTKWY) and Secom (OTCMKTS:SOMLY) are both large-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares Wolters Kluwer and Secom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolters Kluwer	N/A	N/A	N/A
Secom	8.94%	7.81%	5.28%

Risk & Volatility

Wolters Kluwer has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Secom has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Wolters Kluwer shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Wolters Kluwer pays an annual dividend of $3.13 per share and has a dividend yield of 4.4%. Secom pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Secom pays out 17.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Wolters Kluwer and Secom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolters Kluwer	$6.93 billion	2.39	$1.48 billion	N/A	N/A
Secom	$8.35 billion	1.97	$743.57 million	$0.45	22.62

Wolters Kluwer has higher earnings, but lower revenue than Secom.

Analyst Ratings

This is a breakdown of current ratings and target prices for Wolters Kluwer and Secom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolters Kluwer	0	2	3	0	2.60
Secom	0	0	0	0	0.00

Summary

Wolters Kluwer beats Secom on 8 of the 12 factors compared between the two stocks.

About Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.

About Secom

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.