Analyzing Kubota (KUBTY) and Its Rivals

Kubota (OTCMKTS:KUBTY) is one of 436 public companies in the “Machinery” industry, but how does it contrast to its competitors? We will compare Kubota to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Dividends

Kubota pays an annual dividend of $1.19 per share and has a dividend yield of 1.5%. Kubota pays out 15.8% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kubota	8.17%	8.97%	4.22%
Kubota Competitors	-1,035.50%	-36.21%	-0.24%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kubota and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kubota	2	1	0	1	2.00
Kubota Competitors	4215	14731	18260	809	2.41

As a group, “Machinery” companies have a potential upside of 30.95%. Given Kubota’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Kubota has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

0.4% of Kubota shares are held by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are held by institutional investors. 0.0% of Kubota shares are held by insiders. Comparatively, 14.1% of shares of all “Machinery” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Kubota	$20.19 billion	$1.25 billion	10.25
Kubota Competitors	$4.62 billion	$362.62 million	6.30

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

Risk & Volatility

Kubota has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Kubota’s competitors have a beta of 5.12, indicating that their average stock price is 412% more volatile than the S&P 500.

Summary

Kubota beats its competitors on 8 of the 15 factors compared.

Kubota Company Profile

Kubota Corporation is a Japanese manufacturer of machinery and infrastructure products. Founded in Osaka in 1890, the company began by producing cast-iron water pipes and has since expanded into agriculture, construction, and environmental systems. Kubota’s products include tractors, combine harvesters, rice transplanters, farm implements, engines, and compact construction machinery. Its water and environmental businesses provide products and systems such as pipes, pumps, and water-treatment equipment.