Comparing Ricoh (OTCMKTS:RICOY) & Xerox (NASDAQ:XRX)
by Sarita Garza · The Markets DailyRicoh (OTCMKTS:RICOY – Get Free Report) and Xerox (NASDAQ:XRX – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Dividends
Ricoh pays an annual dividend of $0.15 per share and has a dividend yield of 1.6%. Xerox pays an annual dividend of $0.10 per share and has a dividend yield of 3.4%. Ricoh pays out 23.1% of its earnings in the form of a dividend. Xerox pays out -1.4% 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. Xerox is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
85.4% of Xerox shares are owned by institutional investors. 1.5% of Xerox shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Ricoh and Xerox”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ricoh | $17.33 billion | 0.31 | $367.42 million | $0.65 | 14.48 |
| Xerox | $7.02 billion | 0.05 | -$1.03 billion | ($7.38) | -0.40 |
Ricoh has higher revenue and earnings than Xerox. Xerox is trading at a lower price-to-earnings ratio than Ricoh, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Ricoh and Xerox, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ricoh | 0 | 0 | 0 | 0 | 0.00 |
| Xerox | 1 | 2 | 0 | 0 | 1.67 |
Xerox has a consensus price target of $3.45, indicating a potential upside of 16.95%. Given Xerox’s stronger consensus rating and higher probable upside, analysts plainly believe Xerox is more favorable than Ricoh.
Profitability
This table compares Ricoh and Xerox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ricoh | 2.13% | 4.87% | 2.25% |
| Xerox | -11.93% | 17.61% | 0.65% |
Risk & Volatility
Ricoh has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Xerox has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500.
Summary
Xerox beats Ricoh on 8 of the 15 factors compared between the two stocks.
About Ricoh
Ricoh Company, Ltd. provides office, commercial printing, and related solutions worldwide. It operates through Digital services, Digital Products, Graphic Communications, Industrial Solutions, and Other segments. The company sells multifunctional printers (MFPs), laser printers, digital duplicators, wide format printers, facsimile machines, scanners, personal computers, servers, network equipment, related parts and supplies, services, and support and service and solutions related to documents. It also offers production and OEM services for MFPs, laser printers, digital duplicators, wide format printers, facsimile machine, scanners, network equipment, and related parts and supplies. In addition, the company produces and sells cut sheet printers, continuous feed printers, inkjet heads, imaging systems, industrial printers, related parts and supplies, services, and support and software. Further, it produces and sells thermal paper and media products, industrial optical components/modules, and electronic components and precision mechanical components, as well as offers digital cameras, 360°cameras, and environment and healthcare products. The company was formerly known as Riken Optical Co., Ltd. and changed its name to Ricoh Company, Ltd. in 1963. Ricoh Company, Ltd. was incorporated in 1936 and is headquartered in Tokyo, Japan.
About Xerox
Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE. The Print and Other segment designs, develops, and sells document systems, solutions, and services; and IT and software products and services. The FITTLE segment offers financing solutions for direct channel customer purchases; and lease financing to end-users. It also offers workplace solutions comprising desktop monochrome, color, and multifunction printers, and ConnectKey software; digital printing presses and light production devices; and digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services. In addition, the company provides graphic communications, in-plant, and production solutions; FreeFlow, a software solutions for the automation and integration of processing of print job comprising file preparation, final production, and electronic publishing; and IT services, end user computing devices, network infrastructure, and communications technology, as well as technology product support, professional engineering, and commercial robotic process automation. Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie; and invests in startups. The company sells its products through its direct sales force, distributors, independent agents, dealers, value-added resellers, systems integrators, and e-commerce marketplaces. The company was formerly known as Xerox Corporation and changed its name to Xerox Holdings Corporation in August 2019. Xerox Holdings Corporation was founded in 1903 and is headquartered in Norwalk, Connecticut.