CION Investment (NYSE:CION – Get Free Report) and KONE Oyj (OTCMKTS:KNYJY – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Valuation & Earnings
This table compares CION Investment and KONE Oyj’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CION Investment | $194.90 million | 2.97 | $50.14 million | $0.72 | 14.74 |
| KONE Oyj | $11.49 billion | 1.92 | $816.01 million | $0.92 | 22.67 |
KONE Oyj has higher revenue and earnings than CION Investment. CION Investment is trading at a lower price-to-earnings ratio than KONE Oyj, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Institutional and Insider Ownership
31.1% of CION Investment shares are owned by institutional investors. 0.4% of CION Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
CION Investment pays an annual dividend of $1.36 per share and has a dividend yield of 12.8%. KONE Oyj pays an annual dividend of $0.55 per share and has a dividend yield of 2.6%. CION Investment pays out 188.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KONE Oyj pays out 59.8% of its earnings in the form of a dividend.
Profitability
This table compares CION Investment and KONE Oyj’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CION Investment | 17.32% | 11.86% | 5.52% |
| KONE Oyj | 8.13% | 36.62% | 10.26% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for CION Investment and KONE Oyj, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CION Investment | 0 | 2 | 0 | 0 | 2.00 |
| KONE Oyj | 3 | 4 | 1 | 0 | 1.75 |
CION Investment currently has a consensus price target of $11.13, suggesting a potential upside of 4.80%. Given CION Investment’s stronger consensus rating and higher probable upside, research analysts plainly believe CION Investment is more favorable than KONE Oyj.
About CION Investment
CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $25 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.
About KONE Oyj
KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company offers elevators, escalators, and automatic building doors. It also provides maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; and energy solutions for greener buildings; The company was founded in 1908 and is based in Espoo, Finland.
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