Head-To-Head Analysis: Nitto Denko (NDEKY) versus The Competition

Nitto Denko (OTCMKTS:NDEKY) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its competitors? We will compare Nitto Denko to similar companies based on the strength of its profitability, valuation, institutional ownership, risk, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nitto Denko and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitto Denko	0	1	0	0	2.00
Nitto Denko Competitors	3379	12019	25216	950	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 22.21%. Given Nitto Denko’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Nitto Denko has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 11.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Nitto Denko and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nitto Denko	$6.83 billion	$881.09 million	15.75
Nitto Denko Competitors	$6.64 billion	$1.97 billion	46.61

Nitto Denko has higher revenue, but lower earnings than its competitors. Nitto Denko 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.

Volatility & Risk

Nitto Denko has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Nitto Denko’s competitors have a beta of 3.10, suggesting that their average share price is 210% more volatile than the S&P 500.

Dividends

Nitto Denko pays an annual dividend of $0.22 per share and has a dividend yield of 1.1%. Nitto Denko pays out 16.8% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 34.8% of their earnings in the form of a dividend. Nitto Denko is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nitto Denko	12.94%	12.13%	9.66%
Nitto Denko Competitors	-244.98%	-123.32%	-4.47%

Summary

Nitto Denko competitors beat Nitto Denko on 9 of the 15 factors compared.

Nitto Denko Company Profile

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.