Financial Review: Daiichi Sankyo (DSNKY) versus Its Competitors

Daiichi Sankyo (OTCMKTS:DSNKY) is one of 896 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Daiichi Sankyo to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Daiichi Sankyo and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daiichi Sankyo	1	1	0	0	1.50
Daiichi Sankyo Competitors	7798	13888	25778	1037	2.41

As a group, “Pharmaceuticals” companies have a potential upside of 25.65%. Given Daiichi Sankyo’s peers stronger consensus rating and higher probable upside, analysts plainly believe Daiichi Sankyo has less favorable growth aspects than its peers.

Dividends

Daiichi Sankyo pays an annual dividend of $0.34 per share and has a dividend yield of 1.9%. Daiichi Sankyo pays out 34.7% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.3% and pay out 48.0% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Daiichi Sankyo and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Daiichi Sankyo	$14.10 billion	$1.72 billion	18.22
Daiichi Sankyo Competitors	$3.56 billion	$3.19 billion	553.85

Daiichi Sankyo has higher revenue, but lower earnings than its peers. Daiichi Sankyo 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.

Profitability

This table compares Daiichi Sankyo and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daiichi Sankyo	12.13%	16.31%	6.93%
Daiichi Sankyo Competitors	-2,380.38%	-217.94%	-15.54%

Volatility and Risk

Daiichi Sankyo has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, Daiichi Sankyo’s peers have a beta of -3.71, suggesting that their average stock price is 471% less volatile than the S&P 500.

Institutional & Insider Ownership

32.5% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 14.2% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Daiichi Sankyo peers beat Daiichi Sankyo on 9 of the 15 factors compared.

About Daiichi Sankyo

Daiichi Sankyo Company, Limited manufactures, markets, and sells pharmaceutical products worldwide. The company offers Enhertu, a HER2 directed antibody drug conjugate; Turalio, a CSF-1R inhibitor; Vanflyta, a FLT3 inhibitor for the treatment of adult patients with relapsed/refractory FLT3-ITD acute myeloid leukemia; ferric carboxymaltose injection for treating anaemia; and Injectafer for the treatment for iron deficiency anaemia. It also provides olmesartan medoxomil antihypertensive agents; NILEMDO, an oral treatment to help in lowering cholesterol; and Nustendi, a fixed-dose combination tablet of bempedoic acid and ezetimibe for reducing cholesterol. In addition, the company offers Canalia for the treatment of type 2 diabetes mellitus; Emgalty for the treatment of migraine attacks; Pralia for the treatment of anti-osteoporosis/inhibitor of the progression of bone erosion associated with rheumatoid arthritis; Ranmark for the treatment of bone complications caused by bone metastasis from tumors; Tarlige for treating pain; Tenelia for the treatment of Type 2 diabetes mellitus; Venofer for the treatment of iron deficiency anemia; and Vimpat, an anti-epileptic agent. Further, it provides vaccines for influenza, measles/rubella infection, and mumps. The company has a development and commercialization agreement with Merck to jointly develop and commercialize Daiichi Sankyo's DXd antibody drug conjugate (ADC) candidates The company was founded in 1899 and is headquartered in Tokyo, Japan.