Reviewing DSV (OTCMKTS:DSDVY) and West Japan Railway (OTCMKTS:WJRYY)

West Japan Railway (OTCMKTS:WJRYY) and DSV (OTCMKTS:DSDVY) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Japan Railway	$12.26 billion	0.67	$846.98 million	$1.67	10.75
DSV	$37.45 billion	1.42	$1.23 billion	$3.29	33.71

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

Dividends

West Japan Railway pays an annual dividend of $0.39 per share and has a dividend yield of 2.2%. DSV pays an annual dividend of $0.33 per share and has a dividend yield of 0.3%. West Japan Railway pays out 23.4% of its earnings in the form of a dividend. DSV pays out 10.0% 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.

Volatility and Risk

West Japan Railway has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, DSV has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
West Japan Railway	6.41%	9.36%	3.21%
DSV	2.41%	9.38%	3.79%

Insider & Institutional Ownership

0.2% of DSV 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for West Japan Railway and DSV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Japan Railway	0	1	0	0	2.00
DSV	1	0	3	0	2.50

Summary

DSV beats West Japan Railway on 12 of the 14 factors compared between the two stocks.

About West Japan Railway

West Japan Railway Company provides railway transport services in Japan. The company operates through Mobility, Retail, Real Estate, Travel and Regional Solutions, and Other segments. The Mobility segment provides passenger transportation, station operation and management, cleaning and maintenance, construction, machinery and equipment installation, rolling stock and other facility construction services, as well as engages in the railway operations and electric works. The Retail segment sells goods; offers food and other wholesale operation services; and operates department stores. The Real Estate segment sells and leases real estate properties, as well as operates shopping centers and hotels. The Travel and Regional Solutions segment provides travel agency and regional solutions. The Other segment engages in the advertising and other businesses. The company is also involved in the operation of convenience stores, restaurants, and souvenir shops; and provision of credit cards and electronic money services. The company was incorporated in 1987 and is based in Osaka, Japan.

About DSV

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.