Analyzing THK (THKLY) and Its Competitors

THK (OTCMKTS:THKLY) is one of 434 public companies in the “Machinery” industry, but how does it weigh in compared to its rivals? We will compare THK to similar companies based on the strength of its earnings, analyst recommendations, valuation, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
THK	$1.61 billion	-$468.27 million	66.57
THK Competitors	$4.68 billion	$356.15 million	-20.97

THK’s rivals have higher revenue and earnings than THK. THK 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.

Dividends

THK pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. THK pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 27.4% of their earnings in the form of a dividend. THK lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

52.2% of shares of all “Machinery” companies are owned by institutional investors. 13.9% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
THK	N/A	N/A	N/A
THK Competitors	-1,945.70%	-10.01%	0.87%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for THK and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THK	0	1	0	0	2.00
THK Competitors	4091	14495	17915	777	2.41

As a group, “Machinery” companies have a potential upside of 32.11%. Given THK’s rivals stronger consensus rating and higher possible upside, analysts plainly believe THK has less favorable growth aspects than its rivals.

Risk and Volatility

THK has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, THK’s rivals have a beta of 4.53, indicating that their average stock price is 353% more volatile than the S&P 500.

Summary

THK rivals beat THK on 12 of the 15 factors compared.

THK Company Profile

THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.