Contrasting THK (THKLY) and Its Rivals

THK (OTCMKTS:THKLY) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it weigh in compared to its competitors? We will compare THK to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Valuation and Earnings

This table compares THK and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
THK	$1.61 billion	-$468.27 million	72.53
THK Competitors	$4.71 billion	$366.14 million	1.82

THK’s competitors have higher revenue and earnings than THK. THK 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.

Profitability

This table compares THK and its competitors’ 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	-1,044.73%	-15.17%	0.52%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for THK and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THK	0	1	0	0	2.00
THK Competitors	4143	14566	17995	788	2.41

As a group, “Machinery” companies have a potential upside of 30.34%. Given THK’s competitors stronger consensus rating and higher possible upside, analysts clearly believe THK has less favorable growth aspects than its competitors.

Volatility and Risk

THK has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, THK’s competitors have a beta of 4.69, indicating that their average stock price is 369% more volatile than the S&P 500.

Insider and Institutional Ownership

51.7% of shares of all “Machinery” companies are owned by institutional investors. 14.3% of shares of all “Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

THK pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. THK pays out 123.3% 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 2.8% and pay out 24.6% of their earnings in the form of a dividend. THK lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

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

About THK

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.