Critical Survey: Suzuki Motor (OTCMKTS:SZKMY) and Recordati Industria Chimica e Farmaceutica (OTCMKTS:RCDTF)

Recordati Industria Chimica e Farmaceutica (OTCMKTS:RCDTF) and Suzuki Motor (OTCMKTS:SZKMY) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Recordati Industria Chimica e Farmaceutica and Suzuki Motor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recordati Industria Chimica e Farmaceutica	0	1	0	0	2.00
Suzuki Motor	0	0	1	0	3.00

Earnings & Valuation

This table compares Recordati Industria Chimica e Farmaceutica and Suzuki Motor’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recordati Industria Chimica e Farmaceutica	$1.95 billion	N/A	$329.08 million	$1.93	26.74
Suzuki Motor	$34.36 billion	0.66	$1.64 billion	$3.45	13.42

Suzuki Motor has higher revenue and earnings than Recordati Industria Chimica e Farmaceutica. Suzuki Motor is trading at a lower price-to-earnings ratio than Recordati Industria Chimica e Farmaceutica, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Suzuki Motor shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Recordati Industria Chimica e Farmaceutica and Suzuki Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recordati Industria Chimica e Farmaceutica	18.51%	31.80%	12.83%
Suzuki Motor	4.62%	8.65%	4.92%

Volatility and Risk

Recordati Industria Chimica e Farmaceutica has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Suzuki Motor has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Summary

Suzuki Motor beats Recordati Industria Chimica e Farmaceutica on 7 of the 11 factors compared between the two stocks.

About Recordati Industria Chimica e Farmaceutica

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, and marketing of pharmaceuticals worldwide. The company operates through Specialty and Primary Care and Rare Diseases segments. Its product pipeline includes REC 0559 which is in Phase II for the treatment of Neurotrophic Keratitis; REC 0545 for acute decompensation in maple syrup urine diseases; ISTURISA for endogenous Cushing's syndrome; and CYSTADROPS, an corneal cystine deposits in patients with cystinosis. The company also develops CARBAGLU for hyperammonemia due to NAGS deficiency; QARZIBA, an apeiron for the treatment of high-risk neuroblastoma patients with a partial response at the chemotherapeutical through myeloablative therapy and stem cell transplantation, and relapsed or refractory neuroblastoma. In addition, it offers SYLVANT for the treatment of idiopathic multicentric Castleman diseases; REAGILA for Schizophrenia; and ELIGARD for hormone-dependent prostate cancer, as well as CAPHOSOL, a medical device for treatment of oral mucositis due to chemo and radiation therapy. The company was founded in 1926 and is headquartered in Milan, Italy. Recordati Industria Chimica e Farmaceutica S.p.A. operates as a subsidiary of Rossini S.à R.L.

About Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.