Critical Comparison: Otsuka (OTSKY) vs. Its Rivals

Otsuka (OTCMKTS:OTSKY) is one of 903 public companies in the “Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare Otsuka to related companies based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

32.6% of shares of all “Pharmaceuticals” companies are held by institutional investors. 14.1% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Otsuka has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500. Comparatively, Otsuka’s rivals have a beta of -3.07, suggesting that their average share price is 407% less volatile than the S&P 500.

Dividends

Otsuka pays an annual dividend of $0.13 per share and has a dividend yield of 0.3%. Otsuka pays out 5.2% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.7% and pay out 48.2% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otsuka	15.50%	12.86%	9.59%
Otsuka Competitors	-2,299.87%	-222.98%	-17.45%

Analyst Recommendations

This is a summary of current recommendations and price targets for Otsuka and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otsuka	1	2	1	0	2.00
Otsuka Competitors	7584	13648	25432	998	2.42

As a group, “Pharmaceuticals” companies have a potential upside of 30.14%. Given Otsuka’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Otsuka has less favorable growth aspects than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Otsuka	$16.51 billion	$2.43 billion	15.44
Otsuka Competitors	$16.92 billion	$3.14 billion	547.15

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

Summary

Otsuka rivals beat Otsuka on 10 of the 15 factors compared.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.