Comparing Nitto Denko (NDEKY) and Its Rivals

Nitto Denko (OTCMKTS:NDEKY) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Nitto Denko to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Dividends

Nitto Denko pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Nitto Denko pays out 16.8% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 34.9% of their earnings in the form of a dividend. Nitto Denko is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility and Risk

Nitto Denko has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Nitto Denko’s rivals have a beta of 3.10, suggesting that their average share price is 210% more volatile than the S&P 500.

Insider & Institutional Ownership

54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 12.0% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nitto Denko	12.94%	12.13%	9.66%
Nitto Denko Competitors	-244.98%	-123.32%	-4.47%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nitto Denko and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitto Denko	0	1	0	0	2.00
Nitto Denko Competitors	3379	12019	25208	950	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 23.86%. Given Nitto Denko’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nitto Denko has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Nitto Denko and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nitto Denko	$6.83 billion	$886.83 million	16.86
Nitto Denko Competitors	$11.36 billion	$1.79 billion	45.38

Nitto Denko’s rivals have higher revenue and earnings than Nitto Denko. Nitto Denko 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

Nitto Denko rivals beat Nitto Denko on 10 of the 15 factors compared.

Nitto Denko Company Profile

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.