Analyzing Makita (MKTAY) & Its Rivals

Makita (OTCMKTS:MKTAY) is one of 168 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Makita to similar companies based on the strength of its earnings, analyst recommendations, profitability, dividends, valuation, institutional ownership and risk.

Volatility and Risk

Makita has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Makita’s competitors have a beta of 0.48, suggesting that their average stock price is 52% less volatile than the S&P 500.

Dividends

Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.6%. Makita pays out 57.6% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.7% and pay out 45.0% of their earnings in the form of a dividend. Makita lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Makita and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Makita	$5.17 billion	$527.55 million	16.18
Makita Competitors	$3.22 billion	$218.13 million	16.55

Makita has higher revenue and earnings than its competitors. Makita is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Makita and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Makita Competitors	1365	3356	5239	186	2.42

As a group, “Diversified Consumer Services” companies have a potential upside of 57.27%. Given Makita’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Makita has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

48.1% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 1.0% of Makita shares are held by company insiders. Comparatively, 19.8% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Makita and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Makita	10.40%	8.21%	6.95%
Makita Competitors	-1.99%	-38.76%	2.99%

Summary

Makita competitors beat Makita on 9 of the 15 factors compared.

Makita Company Profile

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It 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. 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.