Critical Analysis: Codan (CODAF) versus The Competition

Dividends

Codan pays an annual dividend of C$0.09 per share and has a dividend yield of 0.4%. Codan pays out 163.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.7% and pay out 67.1% of their earnings in the form of a dividend. Codan lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

4.7% of Codan shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 16.3% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Codan and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Codan	N/A	N/A	N/A
Codan Competitors	-203.86%	-151.98%	-7.29%

Earnings & Valuation

This table compares Codan and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Codan	N/A	N/A	454.04
Codan Competitors	$4.02 billion	$183.24 million	25.98

Codan’s rivals have higher revenue and earnings than Codan. Codan is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Codan rivals beat Codan on 5 of the 9 factors compared.

About Codan

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists of DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions. The Metal Detection segment designs, develops, manufactures, and markets metal detection equipment, such as handheld metal detecting technologies for recreational, gold mining, demining, and military markets. The company sells its products through a network of dealers, distributors, and agents in Australia, Canada, Denmark, the United Kingdom, the United States, Brazil, India, Ireland, Mexico, Singapore, the United Arab Emirates, and internationally. Codan Limited was incorporated in 1959 and is headquartered in Mawson Lakes, Australia.