Analyzing Makita (MKTAY) & Its Rivals

Makita (OTCMKTS:MKTAY) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its rivals? We will compare Makita to similar companies based on the strength of its valuation, profitability, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Makita	10.87%	8.60%	7.31%
Makita Competitors	-3.89%	-28.73%	2.35%

Institutional and Insider Ownership

49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 1.0% of Makita shares are owned by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Makita and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Makita Competitors	1445	3450	5293	197	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 62.80%. Given Makita’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Makita has less favorable growth aspects than its rivals.

Volatility and Risk

Makita has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Makita’s rivals have a beta of 0.51, meaning that their average stock price is 49% less volatile than the S&P 500.

Valuation & Earnings

This table compares Makita and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Makita	$5.17 billion	$524.13 million	16.16
Makita Competitors	$3.61 billion	$219.39 million	15.25

Makita has higher revenue and earnings than its rivals. Makita 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.

Dividends

Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.4%. Makita pays out 54.6% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.9% and pay out 36.4% of their earnings in the form of a dividend. Makita lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Makita rivals beat Makita on 8 of the 15 factors compared.

Makita Company Profile

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.