Contrasting Canon (NYSE:CAJ) and Pitney Bowes (PBI)
Pitney Bowes (NYSE: PBI) and Canon (NYSE:CAJ) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitabiliy and earnings.
Pitney Bowes pays an annual dividend of $0.75 per share and has a dividend yield of 5.6%. Canon pays an annual dividend of $1.18 per share and has a dividend yield of 3.4%. Pitney Bowes pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canon pays out 78.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
77.1% of Pitney Bowes shares are owned by institutional investors. Comparatively, 1.5% of Canon shares are owned by institutional investors. 2.0% of Pitney Bowes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Pitney Bowes and Canon’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pitney Bowes||$3.38 billion||0.74||$714.48 million||$0.52||25.71|
|Canon||$33.14 billion||1.15||$4.88 billion||$1.50||23.35|
Canon has higher revenue and earnings than Pitney Bowes. Canon is trading at a lower price-to-earnings ratio than Pitney Bowes, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Pitney Bowes and Canon, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pitney Bowes presently has a consensus target price of $17.67, suggesting a potential upside of 32.14%. Given Pitney Bowes’ higher probable upside, equities research analysts clearly believe Pitney Bowes is more favorable than Canon.
This table compares Pitney Bowes and Canon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Pitney Bowes has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Canon has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Canon beats Pitney Bowes on 8 of the 15 factors compared between the two stocks.
Pitney Bowes Company Profile
Pitney Bowes Inc. is a global technology company. The Company offers customer information management, location intelligence and customer engagement products and solutions to help its clients market to their customers, and shipping, mailing, and cross border e-commerce products and solutions that enable the sending of parcels and packages across the globe. The Company’s segments include Small & Medium Business Solutions (SMB), Enterprise Business Solutions and Digital Commerce Solutions. The SMB segment includes North America Mailing and International Mailing business. The Company is engaged in providing a range of equipment, software, supplies and services that enable its clients to create physical and digital mail and evidence. The Enterprise Business Solutions segment includes production mail and presort services business. The Digital Commerce Solutions segment includes software solutions and global e-commerce business.
Canon Company Profile
Canon Inc. (Canon) is a manufacturer of office multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. Canon sells its products principally under the Canon brand name and through sales subsidiaries. Each of these subsidiaries is responsible for marketing and distribution to retail dealers in an assigned territory. Canon operates its business in three segments: the Office Business Unit, the Imaging System Business Unit, and the Industry and Others Business Unit. Canon’s research and development activities range from basic research to product-oriented research directed at maintaining Canon’s technological operations in the marketplace. Canon has manufacturing subsidiaries in a range of countries, including the United States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand, Vietnam and the Philippines.
Receive News & Stock Ratings for Pitney Bowes Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pitney Bowes Inc. and related stocks with our FREE daily email newsletter.