Yamada (OTCMKTS:YMDAF) versus Alimentation Couche-Tard (OTCMKTS:ANCTF) Financial Review

Alimentation Couche-Tard (OTCMKTS:ANCTF) and Yamada (OTCMKTS:YMDAF) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Alimentation Couche-Tard and Yamada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alimentation Couche-Tard	N/A	N/A	N/A
Yamada	N/A	N/A	N/A

Earnings and Valuation

This table compares Alimentation Couche-Tard and Yamada”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alimentation Couche-Tard	N/A	N/A	N/A	$1.55	34.16
Yamada	N/A	N/A	N/A	$30.81	0.10

Yamada is trading at a lower price-to-earnings ratio than Alimentation Couche-Tard, indicating that it is currently the more affordable of the two stocks.

Dividends

Alimentation Couche-Tard pays an annual dividend of $0.61 per share and has a dividend yield of 1.2%. Yamada pays an annual dividend of $4.78 per share and has a dividend yield of 151.3%. Alimentation Couche-Tard pays out 39.3% of its earnings in the form of a dividend. Yamada pays out 15.5% 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. Yamada is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alimentation Couche-Tard and Yamada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alimentation Couche-Tard	0	2	4	2	3.00
Yamada	0	0	0	0	0.00

Institutional and Insider Ownership

6.7% of Alimentation Couche-Tard shares are held by institutional investors. Comparatively, 25.6% of Yamada shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Alimentation Couche-Tard

Alimentation Couche-Tard Inc. operates and licenses convenience stores in North America, Europe, and Asia. It offers cigarette products and other nicotine products, grocery items, candies and snacks, beer, wine, beverages, and fresh food offerings; road transportation fuels and electric vehicle charging solutions; and aviation fuels, as well as energy for stationary engines. The company operates its convenience stores chain under the Circle K, Couche-Tard, Holiday, Ingo, and Mac’s brands. It is also involved in the sale of lottery tickets, calling and gift cards, postage stamps, and bus tickets; and provision of automatic teller machines and car wash services. In addition, it operates and licenses stores operated under the Circle K banner in Cambodia, Egypt, Guam, Guatemala, Honduras, Indonesia, Jamaica, Macau, Mexico, New Zealand, Saudi Arabia, South Africa, Tanzania, the United Arab Emirates, and Vietnam. The company was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada.

About Yamada

Yamada Holdings Co., Ltd., together with its subsidiaries, operates in the consumer electronics retailing activities in Japan and internationally. It operates through Denki business, Housing, Finance, and Environmental segments. The Denki business segment sells home appliances, such as televisions, refrigerators, and washing machines, as well as home information appliances comprising personal computers, and mobile phones. The Housing segment sells detached houses, as well as manufactures and sells housing equipment, such as baths and kitchens. The Finance segment develops a range of financial products in the new construction, renovation, fund settlement, insurance products, and life plan proposals. The Environmental segment involved in the reuse, recycling and recycling business for products centered on home appliances and personal computers. The company was formerly known as Yamada Denki Co., Ltd. and changed its name to Yamada Holdings Co., Ltd. in October 2020. Yamada Holdings Co., Ltd. was founded in 1973 and is headquartered in Takasaki, Japan.