Head-To-Head Contrast: THK (THKLY) versus Its Competitors

THK (OTCMKTS:THKLY) is one of 434 public companies in the “Machinery” industry, but how does it weigh in compared to its peers? We will compare THK to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares THK and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
THK	N/A	N/A	N/A
THK Competitors	-1,946.94%	-10.14%	0.87%

Dividends

THK pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. THK pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Machinery” companies pay a dividend yield of 2.5% and pay out 27.4% of their earnings in the form of a dividend. THK lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

THK has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, THK’s peers have a beta of 4.53, meaning that their average share price is 353% more volatile than the S&P 500.

Insider & Institutional Ownership

52.2% of shares of all “Machinery” companies are held by institutional investors. 14.0% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for THK and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THK	0	1	0	0	2.00
THK Competitors	4088	14491	17904	777	2.41

As a group, “Machinery” companies have a potential upside of 30.90%. Given THK’s peers stronger consensus rating and higher probable upside, analysts clearly believe THK has less favorable growth aspects than its peers.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
THK	$1.61 billion	-$468.27 million	67.33
THK Competitors	$4.69 billion	$356.15 million	-20.90

THK’s peers have higher revenue and earnings than THK. THK is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

THK peers beat THK on 12 of the 15 factors compared.

THK Company Profile

THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.