Reviewing Amada (OTCMKTS:AMDLY) & Central Japan Railway (OTCMKTS:CJPRY)

Dividends

Central Japan Railway pays an annual dividend of $0.07 per share and has a dividend yield of 0.8%. Amada pays an annual dividend of $1.63 per share and has a dividend yield of 4.3%. Central Japan Railway pays out 4.9% of its earnings in the form of a dividend. Amada pays out 56.8% 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.

Valuation & Earnings

This table compares Central Japan Railway and Amada”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Japan Railway	$11.85 billion	1.48	$2.66 billion	$1.43	6.23
Amada	$2.80 billion	1.16	$280.40 million	$2.87	13.24

Central Japan Railway has higher revenue and earnings than Amada. Central Japan Railway is trading at a lower price-to-earnings ratio than Amada, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of Central Japan Railway shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Central Japan Railway has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Amada has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Profitability

This table compares Central Japan Railway and Amada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Japan Railway	19.15%	9.85%	4.35%
Amada	8.99%	6.78%	5.35%

Summary

Central Japan Railway beats Amada on 8 of the 12 factors compared between the two stocks.

About Central Japan Railway

Central Japan Railway Company engages in the railway and related businesses in Japan. The company operates through Transportation, Merchandise and Other, Real Estate, and Other segments. It primarily operates Tokaido Shinkansen, a transportation artery that links metropolitan areas of Tokyo, Nagoya, and Osaka, as well as a network of 12 conventional lines centered on the Nagoya and Shizuoka areas. The company also provides bus, logistics, travel agency, advertising, linen supply, track maintenance, construction and construction consulting, and contracted accounting and financial services; and manufactures and maintains railway rolling stock and machinery. In addition, it is involved in the operation of a department store; wholesale and retail sales business; sale of food and beverages; leasing and sale of real estate; hotel business; and development, improvement, and maintenance of computer systems. The company was incorporated in 1987 and is headquartered in Nagoya, Japan.

About Amada

Amada Co., Ltd., together with its subsidiaries, manufactures, sells, leases, repairs, maintains, checks, and inspects metalworking machinery, software, and peripheral equipment in Japan, North America, Europe, Asia, and internationally. It offers sheet metal fabrication machines, including laser machines, punch and laser combination machines, turret punch presses, press brakes, bending robots, and welders, as well as software solutions; general fabrication machines, such as shearing and deburring machines, corner shear, iron worker, AMS SPACE series, horizontal benders, tapping and fastener insertion machines, and environment related products; cutting fluids, lubricants, and other consumables; and a range of tools for bending and punching. The company also provides metal cutting machines, such as hyper saw, pulse cutting band saw, automatic and semi-automatic general-purpose band saw, vertical band saw, circular saw, and other machines; structural steel machines; grinding machines; and band saw blades and circular saw blades that are used for metal cutting machines. In addition, it offers precision welding machines, including laser welders and markers, resistance welders, and systems for use in automobile parts, electronic components, and medical instruments. Further, the company provides consumables, and tooling equipment. Additionally, it offers stamping presses and stamping press equipment, and spring machines. The company was formerly known as Amada Holdings Co., Ltd. Amada Co., Ltd. was founded in 1946 and is headquartered in Isehara, Japan.