Technicolor (TCLRY) versus Panasonic (PCRFY) Critical Analysis

Technicolor (OTCMKTS:TCLRY) and Panasonic (OTCMKTS:PCRFY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility and Risk

Technicolor has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Panasonic has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Technicolor and Panasonic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Technicolor N/A N/A N/A
Panasonic 2.88% 12.29% 3.69%

Dividends

Panasonic pays an annual dividend of $0.28 per share and has a dividend yield of 2.8%. Technicolor does not pay a dividend. Panasonic pays out 30.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for Technicolor and Panasonic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Technicolor 0 0 0 0 N/A
Panasonic 0 0 1 0 3.00

Institutional & Insider Ownership

0.3% of Panasonic shares are owned by institutional investors. 1.0% of Panasonic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Technicolor and Panasonic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Technicolor $4.78 billion 0.10 -$194.41 million N/A N/A
Panasonic $72.08 billion 0.32 $2.12 billion $0.91 10.93

Panasonic has higher revenue and earnings than Technicolor.

Summary

Panasonic beats Technicolor on 10 of the 12 factors compared between the two stocks.

About Technicolor

Technicolor SA provides various communication and video technologies, finished products, systems, equipment, and services for businesses and professionals in the entertainment and media industries worldwide. It operates through two segments, Entertainment Services, and Connected Home. The Entertainment Services segment provides production services, such as digital video and sound postproduction services; visual effects and animation services for feature films, TV series, advertising, and video games; computer generated imagery animation services; on-set, color correction, VFX integration, and sound services; and replicates, packages, and distributes video, game and music DVD, Blu-ray, and CD discs, as well as offers turnkey integrated supply-chain solutions. This segment serves film studios, TV broadcasters, independent content producers, game developers/publishers, and OTT service providers. The Connected Home segment designs and supplies set-top boxes, broadband modems and gateways, and Internet of Things connected devices, as well as multi-device communication software, smart home applications, and related professional services. This segment offers its solutions to Pay-TV operators and network service providers. Technicolor SA was founded in 1953 and is headquartered in Issy-les-Moulineaux, France.

About Panasonic

Panasonic Corporation, together with its subsidiaries, develops, produces, sells, and services electrical and electronic products under the Panasonic brand name worldwide. It operates through Appliances, Eco Solutions, Connected Solutions, Automotive & Industrial Systems, and Other segments. The Appliances segment offers air conditioners, TVs, refrigerators, washing machines, personal care products, microwave ovens, digital cameras, home audio equipment, video equipment, fixed-phones, vacuum cleaners, rice cookers, show cases, compressors, fuel cells, etc. The Eco Solutions segment provides lighting fixtures, lamps, wiring devices, solar photovoltaic systems, water related products, interior and exterior furnishing materials, ventilation and air conditioning equipment, air purifiers, bicycles, nursing care related products, etc. The Connected Solutions segment offers in-flight entertainment systems and connectivity, electronic components mounting machines, welding equipment, PCs and tablets, projectors, broadcast and professional AV systems, surveillance cameras, etc. The Automotive & Industrial Systems segment provides automotive use infotainment systems, electrical components, automotive mirrors, lithium ion and automotive batteries, dry batteries, automation controls, electric motors, electronic components, electronic materials, semiconductors, LCD panels, etc. The Others segment provides detached housing construction, apartment housing leasing services, etc.; undertakes remodeling contract works; sells land, properties, and condominiums; offers real estate brokerage, leasing, and management services; and manufactures and sells system materials for industrial housing. The company offers its products to business and industrial customers, and consumers. The company was formerly known as Matsushita Electric Industrial Co., Ltd. and changed its name to Panasonic Corporation in 2008. Panasonic Corporation was founded in 1918 and is headquartered in Kadoma, Japan.

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