Financial Review: Obic (OBIIF) & Its Peers

Obic (OTCMKTS:OBIIF) is one of 273 publicly-traded companies in the “IT Services” industry, but how does it compare to its peers? We will compare Obic to similar businesses based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Obic and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obic	0	1	0	0	2.00
Obic Competitors	2014	5689	9515	344	2.47

As a group, “IT Services” companies have a potential upside of 24.45%. Given Obic’s peers stronger consensus rating and higher possible upside, analysts plainly believe Obic has less favorable growth aspects than its peers.

Institutional and Insider Ownership

36.4% of shares of all “IT Services” companies are held by institutional investors. 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Obic	$898.19 million	$496.26 million	32.09
Obic Competitors	$3.25 billion	$223.00 million	-20.19

Obic’s peers have higher revenue, but lower earnings than Obic. Obic is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Obic and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Obic	56.93%	16.24%	13.71%
Obic Competitors	-191.45%	-32.71%	-8.33%

Volatility & Risk

Obic has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Obic’s peers have a beta of 2.15, suggesting that their average share price is 115% more volatile than the S&P 500.

Summary

Obic peers beat Obic on 8 of the 13 factors compared.

About Obic

Obic Co., Ltd. is a Japanese information technology company that provides business software and systems integration services. Founded in 1968, the company is headquartered in Tokyo and primarily serves businesses in Japan. Its offerings include OBIC7, an integrated enterprise software suite designed to support functions such as accounting, human resources, sales management and production management. Obic also provides consulting, system planning and development, implementation, and ongoing operational support.