Head to Head Analysis: Tokyo Electron (TOELY) & The Competition

Tokyo Electron (OTC:TOELY) is one of 173 public companies in the “Semiconductors & related devices” industry, but how does it weigh in compared to its competitors? We will compare Tokyo Electron to related companies based on the strength of its earnings, valuation, institutional ownership, dividends, profitability, risk and analyst recommendations.

Dividends

Tokyo Electron pays an annual dividend of $1.26 per share and has a dividend yield of 1.6%. Tokyo Electron pays out 33.6% of its earnings in the form of a dividend. As a group, “Semiconductors & related devices” companies pay a dividend yield of 1.5% and pay out 48.5% of their earnings in the form of a dividend. Tokyo Electron is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	$2.51 billion	20.62
Tokyo Electron Competitors	$29.39 billion	$592.42 million	16.21

Tokyo Electron’s competitors have higher revenue, but lower earnings than Tokyo Electron. Tokyo Electron 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.

Analyst Recommendations

This is a summary of current ratings for Tokyo Electron and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
Tokyo Electron Competitors	2515	10063	19720	703	2.56

As a group, “Semiconductors & related devices” companies have a potential upside of 564.24%. Given Tokyo Electron’s competitors higher probable upside, analysts clearly believe Tokyo Electron has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are held by institutional investors. 10.0% of shares of all “Semiconductors & related devices” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	22.63%	28.75%	20.52%
Tokyo Electron Competitors	-470.17%	-79.71%	-11.21%

Volatility and Risk

Tokyo Electron has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Tokyo Electron’s competitors have a beta of 1.55, indicating that their average stock price is 55% more volatile than the S&P 500.

Summary

Tokyo Electron beats its competitors on 9 of the 15 factors compared.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.