Contrasting Teijin (OTCMKTS:TINLY) and Crocs (NASDAQ:CROX)

by · The Markets Daily

Teijin (OTCMKTS:TINLYGet Free Report) and Crocs (NASDAQ:CROXGet Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Profitability

This table compares Teijin and Crocs’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
TeijinN/AN/AN/A
Crocs-2.01%45.17%15.18%

Insider and Institutional Ownership

93.4% of Crocs shares are held by institutional investors. 3.0% of Crocs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Teijin and Crocs”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Teijin$6.60 billion0.29$187.09 million($2.05)-4.88
Crocs$4.04 billion1.21-$81.20 million($1.26)-77.05

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

Analyst Recommendations

This is a breakdown of recent ratings for Teijin and Crocs, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Teijin00000.00
Crocs39302.00

Crocs has a consensus price target of $101.45, indicating a potential upside of 4.51%. Given Crocs’ stronger consensus rating and higher possible upside, analysts plainly believe Crocs is more favorable than Teijin.

Risk and Volatility

Teijin has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Crocs has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Summary

Crocs beats Teijin on 10 of the 14 factors compared between the two stocks.

About Teijin

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Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.

About Crocs

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Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.