Critical Contrast: Auto Trader Group (OTCMKTS:ATDRY) & Marui Group (OTCMKTS:MAURY)

Marui Group (OTCMKTS:MAURY) and Auto Trader Group (OTCMKTS:ATDRY) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Marui Group and Auto Trader Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marui Group	0	0	0	0	0.00
Auto Trader Group	1	4	1	0	2.00

Institutional and Insider Ownership

0.0% of Auto Trader Group shares are owned by institutional investors. 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.

Dividends

Marui Group pays an annual dividend of $1.14 per share and has a dividend yield of 3.3%. Auto Trader Group pays an annual dividend of $0.02 per share and has a dividend yield of 1.1%. Marui Group pays out 53.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Marui Group and Auto Trader Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marui Group	$1.84 billion	1.72	$187.94 million	$2.13	16.41
Auto Trader Group	$836.74 million	6.52	$393.91 million	N/A	N/A

Auto Trader Group has lower revenue, but higher earnings than Marui Group.

Profitability

This table compares Marui Group and Auto Trader Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marui Group	10.48%	12.08%	2.54%
Auto Trader Group	N/A	N/A	N/A

Risk & Volatility

Marui Group has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Auto Trader Group has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

Auto Trader Group beats Marui Group on 7 of the 12 factors compared between the two stocks.

About Marui Group

Marui Group Co., Ltd., an investment holding company, engages in the retailing and FinTech businesses in Japan. The company engages in the design and construction of commercial facilities; advertising planning and production; property management; rental of real estate properties; small-amount short-term insurance policy business; and sale of investment trusts. It is also involved in the operation of websites; contract store opening and operation services; provision of credit card services; operation of Marui/Modi stores; investing and financing direct-to-consumer businesses; internet sales; specialty store; credit loan; collection and management of receivables; credit check; trucking and forwarding; software development; and operation of IT systems, and building management businesses. The company was founded in 1931 and is headquartered in Tokyo, Japan.

About Auto Trader Group

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.