Comparing SMC (SMCAY) & The Competition

SMC (OTCMKTS:SMCAY) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its rivals? We will compare SMC to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Valuation & Earnings

This table compares SMC and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SMC	$5.60 billion	$1.10 billion	17.22
SMC Competitors	$4.13 billion	$172.92 million	4.80

SMC has higher revenue and earnings than its rivals. SMC 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.

Insider and Institutional Ownership

1.0% of SMC shares are held by institutional investors. Comparatively, 43.2% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMC	21.94%	9.40%	8.53%
SMC Competitors	-139.71%	-30.16%	-6.87%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SMC and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC	0	2	1	0	2.33
SMC Competitors	2049	7616	10449	665	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 41.19%. Given SMC’s rivals stronger consensus rating and higher possible upside, analysts plainly believe SMC has less favorable growth aspects than its rivals.

Dividends

SMC pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. SMC pays out 17.5% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 2.0% and pay out 79.6% of their earnings in the form of a dividend.

Volatility and Risk

SMC has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, SMC’s rivals have a beta of -0.29, suggesting that their average stock price is 129% less volatile than the S&P 500.

Summary

SMC beats its rivals on 8 of the 15 factors compared.

SMC Company Profile

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.