West Japan Railway (WJRYY) & The Competition Financial Review

West Japan Railway (OTCMKTS:WJRYY) is one of 102 public companies in the “Ground Transportation” industry, but how does it compare to its competitors? We will compare West Japan Railway to similar companies based on the strength of its risk, dividends, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for West Japan Railway and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Japan Railway	1	0	0	0	1.00
West Japan Railway Competitors	1330	6302	8386	250	2.46

As a group, “Ground Transportation” companies have a potential upside of 11.93%. Given West Japan Railway’s competitors stronger consensus rating and higher possible upside, analysts clearly believe West Japan Railway has less favorable growth aspects than its competitors.

Risk & Volatility

West Japan Railway has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, West Japan Railway’s competitors have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Profitability

This table compares West Japan Railway and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Japan Railway	7.02%	10.17%	3.50%
West Japan Railway Competitors	5.54%	9.29%	3.80%

Earnings and Valuation

This table compares West Japan Railway and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
West Japan Railway	$12.26 billion	$846.98 million	9.70
West Japan Railway Competitors	$8.59 billion	$895.12 million	50.46

West Japan Railway has higher revenue, but lower earnings than its competitors. West Japan Railway is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

West Japan Railway pays an annual dividend of $0.39 per share and has a dividend yield of 2.2%. West Japan Railway pays out 21.1% of its earnings in the form of a dividend. As a group, “Ground Transportation” companies pay a dividend yield of 1.4% and pay out 27.8% of their earnings in the form of a dividend. West Japan Railway is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

59.7% of shares of all “Ground Transportation” companies are owned by institutional investors. 15.1% of shares of all “Ground Transportation” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

West Japan Railway competitors beat West Japan Railway on 10 of the 15 factors compared.

West Japan Railway Company Profile

West Japan Railway Company provides railway transport services in Japan. The company operates through Mobility, Retail, Real Estate, Travel and Regional Solutions, and Other segments. The Mobility segment provides passenger transportation, station operation and management, cleaning and maintenance, construction, machinery and equipment installation, rolling stock and other facility construction services, as well as engages in the railway operations and electric works. The Retail segment sells goods; offers food and other wholesale operation services; and operates department stores. The Real Estate segment sells and leases real estate properties, as well as operates shopping centers and hotels. The Travel and Regional Solutions segment provides travel agency and regional solutions. The Other segment engages in the advertising and other businesses. The company is also involved in the operation of convenience stores, restaurants, and souvenir shops; and provision of credit cards and electronic money services. The company was incorporated in 1987 and is based in Osaka, Japan.