Financial Review: Terumo (TRUMY) versus The Competition

Terumo (OTCMKTS:TRUMY) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its rivals? We will compare Terumo to similar businesses based on the strength of its analyst recommendations, earnings, valuation, institutional ownership, profitability, risk and dividends.

Dividends

Terumo pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Terumo pays out 10.4% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.2% and pay out 42.0% of their earnings in the form of a dividend.

Risk and Volatility

Terumo has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Terumo’s rivals have a beta of 5.41, meaning that their average share price is 441% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Terumo	9.31%	7.03%	4.83%
Terumo Competitors	-300.62%	-179.55%	-22.71%

Earnings and Valuation

This table compares Terumo and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terumo	$7.52 billion	$897.03 million	31.35
Terumo Competitors	$1.89 billion	$136.85 million	5.95

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

Analyst Recommendations

This is a summary of current ratings for Terumo and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terumo	0	0	0	2	4.00
Terumo Competitors	4302	10596	18377	837	2.46

As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.33%. Given Terumo’s rivals higher possible upside, analysts clearly believe Terumo has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned 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.

Summary

Terumo beats its rivals on 9 of the 15 factors compared.

Terumo Company Profile

Terumo Corporation is a Japan-based medical technology company that develops and manufactures products for hospitals, clinics and other healthcare providers. Founded in 1921, the company began by producing clinical thermometers and has since expanded into a broad range of medical devices and services. Terumo’s businesses include cardiovascular and vascular products, such as catheter-based devices and systems used in the treatment of heart and vascular conditions; medical care products, including infusion and injection devices; and blood and cell technologies used to collect, process and manage blood and cellular therapies.