Analyzing Toto (TOTDY) and Its Rivals

Toto (OTCMKTS:TOTDY) is one of 94 public companies in the “Building Products” industry, but how does it weigh in compared to its peers? We will compare Toto to similar companies based on the strength of its earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Valuation and Earnings

This table compares Toto and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Toto	N/A	N/A	0.20
Toto Competitors	$3.95 billion	$4.66 billion	53.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toto	N/A	N/A	N/A
Toto Competitors	3.28%	39.84%	5.03%

Insider and Institutional Ownership

0.1% of Toto shares are held by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are held by institutional investors. 10.3% of shares of all “Building Products” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Toto pays an annual dividend of $0.43 per share and has a dividend yield of 1.0%. Toto pays out 0.2% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 6.5% and pay out 37.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Toto and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toto	0	1	0	0	2.00
Toto Competitors	695	3775	4894	221	2.48

As a group, “Building Products” companies have a potential upside of 16.68%. Given Toto’s peers stronger consensus rating and higher probable upside, analysts clearly believe Toto has less favorable growth aspects than its peers.

Summary

Toto peers beat Toto on 12 of the 13 factors compared.

Toto Company Profile

Toto Ltd. manufactures and sells bathroom and kitchen plumbing fixtures worldwide. It provides sanitary ware comprising toilet basins, urinals, sinks, washbasins, etc.; system toilets; toilet seats; plumbing accessories, etc.; bathtubs; unit bathrooms; and fittings consisting of various faucets, drain fittings, etc. The company also offers modular kitchens; bathroom vanity units; marbright artificial marble counters; bathroom ventilation, heating, and drying systems; and welfare equipment, etc. In addition, it provides green building materials, such as tiles, ceramic slabs, etc.; and ceramics. The company was formerly known as TOTO Kiki Ltd. and changed its name to Toto Ltd. in 2007. Toto Ltd. was incorporated in 1917 and is headquartered in Kitakyushu, Japan.