Q.E.P. (OTCMKTS:QEPC – Get Rating) and Makita (OTCMKTS:MKTAY – Get Rating) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Earnings & Valuation
This table compares Q.E.P. and Makita’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Q.E.P. | $433.66 million | 0.11 | -$60,000.00 | ($0.02) | -644.68 |
Makita | $5.47 billion | N/A | $86.62 million | $0.76 | 37.93 |
Makita has higher revenue and earnings than Q.E.P.. Q.E.P. is trading at a lower price-to-earnings ratio than Makita, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Q.E.P. | 0 | 0 | 0 | 0 | N/A |
Makita | 1 | 2 | 1 | 0 | 2.00 |
Profitability
This table compares Q.E.P. and Makita’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Q.E.P. | -0.01% | -0.08% | -0.03% |
Makita | 3.63% | 3.60% | 2.51% |
Volatility and Risk
Q.E.P. has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500. Comparatively, Makita has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Insider and Institutional Ownership
4.5% of Q.E.P. shares are held by institutional investors. 51.1% of Q.E.P. shares are held by company insiders. Comparatively, 1.0% of Makita shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Makita beats Q.E.P. on 9 of the 11 factors compared between the two stocks.
About Q.E.P.
Q.E.P. Co., Inc., together with its subsidiaries, manufactures, markets, and distributes a range of hardwood flooring, flooring installation tools, adhesives, and flooring related products for the professional installer markets. It operates through three segments: North America, Europe, and Australia/New Zealand. The company's product portfolio includes tile saws, blades, and accessories; tile cutters and accessories; hand tools; tile spacers; scrapers; trowels and floats; mixers and paddles; drill bits, hole saws, and jigsaw blades; scarpers and blades clean-up, repair, and maintenance products; knee pads and safety tools; installation kits; underlayment products; cement boards and masonry tools; and Brutus products. The company markets its products under the QEP, LASH, Roberts, Harris Flooring Group, Capitol, Vitrex, Homelux, Brutus, PRCI, Plasplugs, Tomecanic, Premix-Marbletite (PMM), Apple Creek, and Elastimentt brands. It sells its products to home improvement retail centers, specialty distribution outlets, and flooring dealers. Q.E.P. Co., Inc. was founded in 1979 and is headquartered in Boca Raton, Florida.
About Makita
Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, rest of Asia, Central and South America, Oceania, and the Middle East and Africa. The company offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. It provides its products under the Makita brand. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.
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