Rohm (ROHCY) and Its Peers Critical Comparison

Rohm (OTCMKTS:ROHCY) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its peers? We will compare Rohm to similar companies based on the strength of its risk, institutional ownership, valuation, analyst recommendations, dividends, profitability and earnings.

Institutional and Insider Ownership

54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Rohm	$3.20 billion	-$1.05 billion	-7.00
Rohm Competitors	$1,259.14 billion	$2.48 billion	9.16

Rohm’s peers have higher revenue and earnings than Rohm. Rohm 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 Rohm and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rohm	-29.85%	4.39%	2.70%
Rohm Competitors	-1,278.97%	-126.38%	-4.00%

Analyst Ratings

This is a summary of recent ratings for Rohm and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rohm	0	1	1	0	2.50
Rohm Competitors	3496	12343	25763	995	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 53.20%. Given Rohm’s peers stronger consensus rating and higher probable upside, analysts clearly believe Rohm has less favorable growth aspects than its peers.

Risk and Volatility

Rohm has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Rohm’s peers have a beta of 2.80, indicating that their average stock price is 180% more volatile than the S&P 500.

Dividends

Rohm pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Rohm pays out -7.0% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 1.0% and pay out 29.7% of their earnings in the form of a dividend.

Summary

Rohm peers beat Rohm on 11 of the 15 factors compared.

About Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.