Reviewing Makita (MKTAY) and Its Competitors

Makita (OTCMKTS:MKTAY) is one of 168 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it compare to its competitors? We will compare Makita to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

48.7% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 1.0% of Makita shares are held by insiders. Comparatively, 19.9% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Makita and its competitors’ 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	-2.01%	-37.80%	3.06%

Volatility and Risk

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

Dividends

Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.4%. 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 5.9% and pay out 45.1% of their earnings in the form of a dividend. Makita lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Makita and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Makita Competitors	1379	3373	5257	188	2.42

As a group, “Diversified Consumer Services” companies have a potential upside of 57.72%. Given Makita’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Makita has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Makita and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Makita	$5.17 billion	$527.55 million	16.75
Makita Competitors	$3.22 billion	$218.79 million	14.45

Makita has higher revenue and earnings than its competitors. Makita 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.

Summary

Makita competitors 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.