Critical Contrast: Kandi Technologies Group (NASDAQ:KNDI) versus Shimano (OTCMKTS:SMNNY)

Shimano (OTCMKTS:SMNNY) and Kandi Technologies Group (NASDAQ:KNDI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

0.0% of Shimano shares are held by institutional investors. Comparatively, 3.7% of Kandi Technologies Group shares are held by institutional investors. 16.8% of Kandi Technologies Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Shimano and Kandi Technologies Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
Kandi Technologies Group	1	0	0	0	1.00

Profitability

This table compares Shimano and Kandi Technologies Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	10.72%	5.96%	5.48%
Kandi Technologies Group	N/A	N/A	N/A

Volatility and Risk

Shimano has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Kandi Technologies Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Valuation & Earnings

This table compares Shimano and Kandi Technologies Group”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	3.08	$503.78 million	$0.37	28.70
Kandi Technologies Group	$104.04 million	0.78	-$50.50 million	($0.58)	-1.64

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

Summary

Shimano beats Kandi Technologies Group on 9 of the 12 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 Kandi Technologies Group

Kandi Technologies Group, Inc. engages in designing, developing, manufacturing, and commercializing electric vehicle (EV) products and parts in the People's Republic of China and the United States. It offers also off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and battery packs and smart battery swap system. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.