Makita (MKTAY) & Its Peers Critical Analysis

Makita (OTCMKTS:MKTAY) is one of 167 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its rivals? We will compare Makita to similar businesses based on the strength of its analyst recommendations, dividends, risk, profitability, valuation, institutional ownership and earnings.

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	10.40%	8.21%	6.95%
Makita Competitors	-1.90%	-339.25%	2.97%

Analyst Recommendations

This is a breakdown of current ratings for Makita and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Makita Competitors	1366	3341	5191	186	2.42

As a group, “Diversified Consumer Services” companies have a potential upside of 57.48%. Given Makita’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Makita has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

47.7% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 1.0% of Makita shares are owned by company insiders. Comparatively, 20.0% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Makita has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Makita’s rivals have a beta of 0.48, indicating that their average stock price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Makita and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Makita	$5.17 billion	$527.55 million	16.30
Makita Competitors	$3.24 billion	$220.89 million	13.78

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 3.5%. Makita pays out 57.6% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.8% and pay out 44.8% 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.

About Makita

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.