Critical Contrast: Rakuten Group (OTCMKTS:RKUNY) vs. Schroders (OTCMKTS:SHNWF)

Schroders (OTCMKTS:SHNWF) and Rakuten Group (OTCMKTS:RKUNY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Profitability

This table compares Schroders and Rakuten Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schroders	N/A	N/A	N/A
Rakuten Group	-14.15%	-26.20%	-1.32%

Earnings & Valuation

This table compares Schroders and Rakuten Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	$3.65 billion	1.98	$500.79 million	N/A	N/A
Rakuten Group	$14.77 billion	0.76	-$2.41 billion	($1.00)	-5.26

Schroders has higher earnings, but lower revenue than Rakuten Group.

Volatility and Risk

Schroders has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Rakuten Group has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Schroders and Rakuten Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	0	0	1	0	3.00
Rakuten Group	0	0	0	0	N/A

Summary

Schroders beats Rakuten Group on 7 of the 8 factors compared between the two stocks.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm's alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

About Rakuten Group

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.