Sharp (OTCMKTS:SHCAY) and Koss (NASDAQ:KOSS) Critical Analysis

Sharp (OTCMKTS:SHCAY) and Koss (NASDAQ:KOSS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sharp and Koss, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sharp	0	0	0	0	0.00
Koss	1	0	0	0	1.00

Profitability

This table compares Sharp and Koss’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sharp	3.12%	17.61%	1.95%
Koss	-6.94%	-2.85%	-2.34%

Insider and Institutional Ownership

6.2% of Koss shares are owned by institutional investors. 44.3% of Koss shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Sharp and Koss”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sharp	$14.19 billion	0.25	$238.22 million	$0.16	8.38
Koss	$13.49 million	3.30	-$880,000.00	($0.01)	-471.00

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

Volatility & Risk

Sharp has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Koss has a beta of -2.06, suggesting that its share price is 306% less volatile than the S&P 500.

Summary

Sharp beats Koss on 8 of the 12 factors compared between the two stocks.

About Sharp

Sharp Corporation manufactures and sells telecommunication equipment, electric and electronic application equipment, and electronic components in Japan, China, and internationally. It operates through five segments: Smart Life, 8K Ecosystem, ICT, Display Device, and Electronic Device. The Smart Life segment offers refrigerators, superheated steam ovens, microwave ovens, small cooking appliances, air conditioners, washing machines, vacuum cleaners, air purifiers, electric fans, dehumidifiers, humidifiers, electric heaters, plasmacluster ion generators, beauty appliances, electronic dictionaries, calculators, telephones, network control units, solar cells, storage batteries, etc. The 8K Ecosystem segment provides color televisions, Blu-ray disc recorders, audio equipment, multi-function printers, information displays, commercial projectors, POS system equipment, FA equipment, options/consumables, software, face masks, etc., as well as office-related solutions services. The ICT segment offers mobile phones, personal computers, tablet devices, routers, etc. The Display Device segments provides display modules, in-vehicle cameras, etc. The Electronic Device segment offers camera modules, sensor modules, proximity sensors, dust sensors, wafer foundries, CMOS / CCD sensors, semiconductor lasers, etc. The company was formerly known as Hayakawa Electric Industry Co., Ltd. and changed its name to Sharp Corporation in January 1970. Sharp Corporation was founded in 1912 and is headquartered in Sakai, Japan.

About Koss

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.