Critical Analysis: Ryohin Keikaku (RYKKY) and The Competition

Ryohin Keikaku (OTCMKTS:RYKKY) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it contrast to its competitors? We will compare Ryohin Keikaku to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ryohin Keikaku	N/A	N/A	N/A
Ryohin Keikaku Competitors	-3.16%	-18.42%	-1.34%

Analyst Recommendations

This is a summary of recent ratings and target prices for Ryohin Keikaku and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryohin Keikaku	0	2	0	0	2.00
Ryohin Keikaku Competitors	1349	5297	10675	294	2.56

As a group, “Broadline Retail” companies have a potential upside of 13.51%. Given Ryohin Keikaku’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Ryohin Keikaku has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

44.5% of shares of all “Broadline Retail” companies are owned by institutional investors. 24.0% of shares of all “Broadline Retail” 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.

Dividends

Ryohin Keikaku pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. Ryohin Keikaku pays out 16.2% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 32.1% and pay out 11.5% of their earnings in the form of a dividend. Ryohin Keikaku lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Ryohin Keikaku and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ryohin Keikaku	$5.28 billion	$340.67 million	37.76
Ryohin Keikaku Competitors	$22.54 billion	$1.73 billion	-224.22

Ryohin Keikaku’s competitors have higher revenue and earnings than Ryohin Keikaku. Ryohin Keikaku 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.

Summary

Ryohin Keikaku competitors beat Ryohin Keikaku on 10 of the 14 factors compared.

Ryohin Keikaku Company Profile

Ryohin Keikaku Co., Ltd. develops, manufactures, distributes, and sells apparel, household goods, and food items in Japan and internationally. It offers apparel products, comprising shirts, denim jeans, socks, sneakers, innerwear, sweaters, camisoles, cardigans, windbreakers, duffle coats, skirts, trousers, pajamas for adults and kids, maternity stoles, backpacks, handbags, case trolleys, hats, mufflers, gloves, stockings, umbrellas, slippers, sandals, and Japanese working clothes; household goods products, including towels, mattresses, toning water, skin care products, make-up tools, fragrance oils, aroma diffusers, air purifiers, stationary, storage boxes and cases, kitchenware, cutleries, refrigerators, toasters, kettles, juicers, mixers, coffee makers, rice cookers, cabinets, shelves, chairs, benches, sofas, beds, duvets, blankets, refillable bottles, baskets, buckets, cleaning tools, laundry supplies, emergency kits, reusable masks, clocks, flashlights, radios, speakers, extension cords, travel adapters, toys, and bicycles and tricycles; and food products, including retort pouch foods, baumkuchen banana, frying-pan-ready meal kits, butter chicken curry, cookies, crackers, canned foods, potato chips, seasonings, jams, soups, frozen foods, doughnuts, ice cream, coffee beans, sake, sparkling water, and apple juice, as well as houses. The company designs, manufactures, and sells home furnishings, such as furniture, accessories, antiques, curtains, and rugs; engages in the production, consulting, and design of residential and commercial spaces; and develops and manages green/environmental businesses. In addition, it operates MUJI to GO shops that offer travel, commuting, business, study, and play products; Found MUJI; MUJI 500; Café&Meal; IDÉE stores; MUJI Campsite, which operates campgrounds; MUJI HOUSE; and muji.com, an online store. Ryohin Keikaku Co., Ltd. was incorporated in 1979 and is based in Tokyo, Japan.