Critical Review: Arrow Global Group (OTCMKTS:ARWGF) and Brother Industries (OTCMKTS:BRTHY)

Profitability

This table compares Arrow Global Group and Brother Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arrow Global Group	N/A	N/A	N/A
Brother Industries	3.59%	4.51%	3.38%

Volatility and Risk

Arrow Global Group has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Valuation and Earnings

This table compares Arrow Global Group and Brother Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrow Global Group	$455.51 million	1.62	-$120.76 million	$0.10	41.82
Brother Industries	$5.70 billion	0.75	$218.36 million	$1.59	21.06

Brother Industries has higher revenue and earnings than Arrow Global Group. Brother Industries is trading at a lower price-to-earnings ratio than Arrow Global Group, indicating that it is currently the more affordable of the two stocks.

Summary

Brother Industries beats Arrow Global Group on 6 of the 9 factors compared between the two stocks.

About Arrow Global Group

Arrow Global Group PLC identifies, acquires, and manages secured and unsecured defaulted and non-core loan portfolios and real estate from and on behalf of financial institutions, such as banks, institutional investors, and credit card companies in the United Kingdom, Ireland, Portugal, Italy, and the Netherlands. The company operates through Balance Sheet Business; Asset Management and Servicing Business; and Fund and Investment Management Business segments. It also manages g debt portfolios on behalf of external servicers and fund clients. The company sells its products under the Arrow Global, Capquest, Mars Capital, Drydensfairfax solicitors, Zenith, Europa Investimenti, Sagitta, Norfin, Whitestar, Vesting Finance, and Focum brand names. Arrow Global Group PLC was founded in 2005 and is headquartered in Manchester, the United Kingdom.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.