Fujitsu (FJTSY) and Its Peers Financial Comparison

Fujitsu (OTCMKTS:FJTSY) is one of 271 public companies in the “IT Services” industry, but how does it compare to its rivals? We will compare Fujitsu to similar companies based on the strength of its profitability, institutional ownership, valuation, dividends, risk, earnings and analyst recommendations.

Profitability

This table compares Fujitsu and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fujitsu	N/A	N/A	N/A
Fujitsu Competitors	-191.32%	-32.18%	-8.63%

Risk and Volatility

Fujitsu has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Fujitsu’s rivals have a beta of 2.16, suggesting that their average stock price is 116% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Fujitsu shares are owned by institutional investors. Comparatively, 36.7% of shares of all “IT Services” companies are owned by institutional investors. 20.4% of shares of all “IT Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Fujitsu pays an annual dividend of $0.26 per share and has a dividend yield of 1.2%. Fujitsu pays out 48.1% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 2.4% and pay out 71.1% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Fujitsu and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fujitsu	$23.27 billion	$2.97 billion	39.36
Fujitsu Competitors	$3.32 billion	$227.67 million	-20.85

Fujitsu has higher revenue and earnings than its rivals. Fujitsu is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for Fujitsu and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	2	0	1	2.67
Fujitsu Competitors	1991	5645	9449	342	2.47

As a group, “IT Services” companies have a potential upside of 31.38%. Given Fujitsu’s rivals higher probable upside, analysts clearly believe Fujitsu has less favorable growth aspects than its rivals.

Summary

Fujitsu beats its rivals on 8 of the 14 factors compared.

Fujitsu Company Profile

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.