Comparing Nitto Denko (NDEKY) and Its Peers

Nitto Denko (OTCMKTS:NDEKY) is one of 220 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Nitto Denko to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Dividends

Nitto Denko pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Nitto Denko pays out 16.8% 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. Nitto Denko is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nitto Denko	12.94%	12.35%	9.83%
Nitto Denko Competitors	-216.91%	-123.05%	-2.86%

Insider and Institutional Ownership

54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 12.1% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nitto Denko	$6.83 billion	$886.83 million	17.05
Nitto Denko Competitors	$11.04 billion	$1.80 billion	52.84

Nitto Denko’s rivals have higher revenue and earnings than Nitto Denko. Nitto Denko 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.

Volatility & Risk

Nitto Denko has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Nitto Denko’s rivals have a beta of 2.00, suggesting that their average share price is 100% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Nitto Denko and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitto Denko	0	1	0	0	2.00
Nitto Denko Competitors	3346	11938	24949	917	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 11.53%. Given Nitto Denko’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nitto Denko has less favorable growth aspects than its rivals.

Summary

Nitto Denko rivals beat Nitto Denko on 10 of the 15 factors compared.

About Nitto Denko

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.