Financial Contrast: NEC (NIPNF) versus The Competition

Valuation and Earnings

This table compares NEC and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NEC	$25.69 billion	$412.83 million	18.69
NEC Competitors	$3.44 billion	$221.32 million	10.34

NEC has higher revenue and earnings than its rivals. NEC is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NEC	N/A	N/A	N/A
NEC Competitors	-4,173.53%	-84.73%	-11.03%

Risk and Volatility

NEC has a beta of -0.47, meaning that its share price is 147% less volatile than the S&P 500. Comparatively, NEC’s rivals have a beta of 1.58, meaning that their average share price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

36.5% of shares of all “IT Services” companies are owned by institutional investors. 19.8% of shares of all “IT Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

NEC beats its rivals on 6 of the 9 factors compared.

About NEC

NEC Corporation provides information and communication technology solutions in Japan and internationally. It operates through five segments: Public Solutions Business, Public Infrastructure Business, Enterprise Business, Network Services Business, and Global Business. It provides systems integration services, including systems implementation and consulting; maintenance and support services; outsourcing and cloud services; and system equipment. The company also offers network infrastructure products comprising core network equipment, mobile phone base stations, optical transmission systems, and routers and switches; and services and management solutions, such as operation support system (OSS), business support system (BSS), and services. In addition, it provides digital government and digital finance solutions; software services for service providers, including OSS/BSS; and network infrastructure comprising submarine systems and wireless backhaul. Further, the company offers business computers, servers, NEC HPC solutions, and thin client solutions; data storage solutions; embedded systems; fiber optic devices; CONNEXIVE, an IoT platform software; PASOLINK, a mobile backhaul; optical fiber sensing products; submarine systems; and open optical transport products. Additionally, it provides EXPRESSCLUSTER X, a BC/DR solutions; NIAS, a solution for file server management; ERP solutions; MasterScope, an integrated administration software suite; Obbligato, a product lifecycle management; SaaS Solutions; WebOTX, a service execution platform; and unified communications and collaboration solutions. It serves aerospace, agriculture, aviation, broadcasting, finance, government, healthcare, hospitality, logistics, manufacturing, retail, telecom, and transportation industries. The company was formerly known as Nippon Electric Company, Limited and changed its name to NEC Corporation in April 1983. NEC Corporation was incorporated in 1899 and is headquartered in Tokyo, Japan.