Head to Head Analysis: Olympus (OCPNY) and The Competition

Olympus (OTCMKTS:OCPNY) is one of 515 public companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its competitors? We will compare Olympus to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Olympus and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olympus	0	0	1	0	3.00
Olympus Competitors	4176	10253	17859	789	2.46

As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 26.68%. Given Olympus’ competitors higher possible upside, analysts clearly believe Olympus has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Olympus and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Olympus	$7.74 billion	$1.03 billion	21.95
Olympus Competitors	$1.88 billion	$143.04 million	8.42

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

Risk and Volatility

Olympus has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Olympus’ competitors have a beta of 2.56, suggesting that their average share price is 156% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Olympus shares are owned by institutional investors. Comparatively, 40.1% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Olympus	13.80%	24.30%	9.30%
Olympus Competitors	-275.43%	-157.35%	-22.23%

Dividends

Olympus pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Olympus pays out 9.8% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.3% and pay out 52.3% of their earnings in the form of a dividend.

Summary

Olympus beats its competitors on 9 of the 15 factors compared.

Olympus Company Profile

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.