Comparing Debenhams (OTCMKTS:DBHSY) & THK (OTCMKTS:THKLY)

Debenhams (OTCMKTS:DBHSY) and THK (OTCMKTS:THKLY) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Debenhams and THK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Debenhams	0	0	0	0	N/A
THK	0	0	0	0	N/A

Earnings & Valuation

This table compares Debenhams and THK’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Debenhams	$3.07 billion	0.00	-$621.24 million	($2.02)	0.00
THK	$2.51 billion	N/A	$130.63 million	$0.54	17.87

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

Dividends

Debenhams pays an annual dividend of $0.02 per share and has a dividend yield of 200.0%. THK pays an annual dividend of $0.07 per share and has a dividend yield of 0.7%. Debenhams pays out -1.0% of its earnings in the form of a dividend. THK pays out 13.0% 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. Debenhams is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Debenhams has a beta of -0.62, meaning that its share price is 162% less volatile than the S&P 500. Comparatively, THK has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Debenhams and THK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Debenhams	N/A	N/A	N/A
THK	5.22%	5.04%	3.26%

Summary

THK beats Debenhams on 7 of the 10 factors compared between the two stocks.

About Debenhams

Debenhams plc, through its subsidiaries, operates and franchises a range of department stores in the United Kingdom, the Republic of Ireland, Denmark, and internationally. It provides women's wear, men's wear, kids wear, and lingerie, as well as beauty, home, furniture, gift and toy, electrical, Christmas, and others products. The company's brands primarily include The Collection, Mantaray, Maine New England, and Red Herring. It is also involved in online retailing business; and the operation of in-store cafes and restaurants. The company owns and operates 240 department stores in approximately 90 countries. Debenhams plc was founded in 1778 and is headquartered in London, the United Kingdom.

About THK

THK Co., Ltd. engages in the manufacture and sale of machine components in Japan, the Americas, Europe, China, and internationally. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings and tables, electric actuators and linear motor actuators, cam followers, roller followers, linear bushes, slide packs, slide rails, cross roller guides, linear ball slides, LM and flat rollers, spline nuts, LM strokes, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.