Nitto Denko (NDEKY) vs. The Competition Head-To-Head Comparison

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

Profitability

This table compares Nitto Denko and its peers’ 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%

Risk and Volatility

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

Valuation & Earnings

This table compares Nitto Denko and its peers 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 peers have higher revenue and earnings than Nitto Denko. Nitto Denko is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 12.0% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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 peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nitto Denko and its peers, as provided 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 peers stronger consensus rating and higher possible upside, analysts clearly believe Nitto Denko has less favorable growth aspects than its peers.

Summary

Nitto Denko peers 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.