Reviewing Denso (DNZOY) & Its Competitors

Denso (OTCMKTS:DNZOY) is one of 148 public companies in the “Automobile Components” industry, but how does it contrast to its competitors? We will compare Denso to related companies based on the strength of its institutional ownership, analyst recommendations, dividends, valuation, risk, profitability and earnings.

Profitability

This table compares Denso and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Denso	5.57%	7.74%	4.89%
Denso Competitors	-40.86%	0.04%	-1.91%

Analyst Ratings

This is a breakdown of current ratings and price targets for Denso and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denso	0	3	0	0	2.00
Denso Competitors	1090	4503	6139	202	2.46

As a group, “Automobile Components” companies have a potential upside of 62.25%. Given Denso’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Denso has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Denso and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Denso	$50.09 billion	$2.93 billion	11.39
Denso Competitors	$7.69 billion	$73.97 million	3.69

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

Volatility & Risk

Denso has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Denso’s competitors have a beta of 3.88, meaning that their average share price is 288% more volatile than the S&P 500.

Dividends

Denso pays an annual dividend of $0.26 per share and has a dividend yield of 2.2%. Denso pays out 25.2% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.8% and pay out 24.3% of their earnings in the form of a dividend. Denso lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

48.4% of shares of all “Automobile Components” companies are held by institutional investors. 19.6% of shares of all “Automobile Components” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Denso competitors beat Denso on 9 of the 15 factors compared.

Denso Company Profile

DENSO Corporation is a Japanese mobility and automotive technology supplier that develops and manufactures components and systems for vehicle makers and other customers. Its products include thermal systems, powertrain and electrification components, automotive electronics, and technologies for vehicle safety and mobility. Founded in 1949 as Nippon Denso Co., Ltd., the company became independent from Toyota Motor Corporation and later adopted the name DENSO Corporation. It is headquartered in Kariya, Aichi Prefecture, Japan.