Analyzing Lenovo Group (OTCMKTS:LNVGY) & Konica Minolta (OTCMKTS:KNCAY)

Konica Minolta (OTCMKTS:KNCAY) and Lenovo Group (OTCMKTS:LNVGY) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

0.1% of Lenovo Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Konica Minolta has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Lenovo Group has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Konica Minolta and Lenovo Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Konica Minolta	0	0	0	0	0.00
Lenovo Group	0	1	0	1	3.00

Earnings & Valuation

This table compares Konica Minolta and Lenovo Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Konica Minolta	$7.23 billion	0.26	$199.77 million	($0.05)	-153.00
Lenovo Group	$83.08 billion	0.50	$1.91 billion	$2.77	24.00

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

Dividends

Konica Minolta pays an annual dividend of $0.10 per share and has a dividend yield of 1.3%. Lenovo Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Konica Minolta pays out -200.0% of its earnings in the form of a dividend. Lenovo Group pays out 14.4% 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. Konica Minolta is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Konica Minolta and Lenovo Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Konica Minolta	N/A	N/A	N/A
Lenovo Group	2.30%	27.74%	4.21%

Summary

Lenovo Group beats Konica Minolta on 12 of the 14 factors compared between the two stocks.

About Konica Minolta

Konica Minolta, Inc. engages in digital workplace, professional print, healthcare, and industrial businesses in Japan, China, other Asian countries, the United States, Europe, and internationally. It develops, manufactures, and sells multi-functional peripherals, digital printing systems, and related consumables, as well as offers IT and printing solutions and services. The company also provides diagnostic imaging systems, such as digital X-ray diagnostic imaging, diagnostic ultrasound systems, and other systems; digitalization, networking, solutions, and services in the medical field; genetic testing and drug discovery support services; and primary care services. In addition, it offers measuring instruments; functional film displays; organic light emitting diode lighting products; industrial inkjet printheads; lenses for industrial and professional use; and imaging IoT and visual solutions. The company was founded in 1873 and is headquartered in Tokyo, Japan.

About Lenovo Group

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.