Head-To-Head Survey: Disco (DSCSY) versus Its Rivals

Disco (OTCMKTS:DSCSY) is one of 219 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Disco to related businesses based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, institutional ownership and risk.

Institutional and Insider Ownership

0.0% of Disco shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 12.1% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by 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 current ratings and recommmendations for Disco and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	1	1	0	2.50
Disco Competitors	3339	11925	24911	910	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 11.19%. Given Disco’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Disco has less favorable growth aspects than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Disco	$2.90 billion	$894.45 million	46.36
Disco Competitors	$11.04 billion	$1.80 billion	51.55

Disco’s rivals have higher revenue and earnings than Disco. Disco is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Disco has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Disco’s rivals have a beta of 2.00, suggesting that their average stock price is 100% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Disco	31.65%	26.03%	20.56%
Disco Competitors	-227.39%	-124.78%	-3.06%

Dividends

Disco pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Disco pays out 32.2% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.8% and pay out 35.5% of their earnings in the form of a dividend.

Summary

Disco rivals beat Disco on 11 of the 15 factors compared.

Disco Company Profile

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.