Head to Head Survey: Japan Tob (JAPAY) and Its Peers

Japan Tob (OTCMKTS:JAPAY) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Japan Tob to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 19.9% of shares of all “Diversified Consumer Services” 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.

Valuation and Earnings

This table compares Japan Tob and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Japan Tob	$23.20 billion	$3.42 billion	16.77
Japan Tob Competitors	$3.24 billion	$219.82 million	12.08

Japan Tob has higher revenue and earnings than its competitors. Japan Tob 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Japan Tob	N/A	N/A	N/A
Japan Tob Competitors	-3.20%	-28.46%	2.44%

Analyst Recommendations

This is a breakdown of current ratings for Japan Tob and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	1	1	0	2.00
Japan Tob Competitors	1428	3421	5268	194	2.41

Japan Tob presently has a consensus target price of $17.00, suggesting a potential downside of 25.99%. As a group, “Diversified Consumer Services” companies have a potential upside of 63.59%. Given Japan Tob’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Japan Tob has less favorable growth aspects than its competitors.

Dividends

Japan Tob pays an annual dividend of $0.53 per share and has a dividend yield of 2.3%. Japan Tob pays out 38.7% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.0% of their earnings in the form of a dividend. Japan Tob lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Japan Tob has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Japan Tob’s competitors have a beta of 0.47, meaning that their average share price is 53% less volatile than the S&P 500.

Summary

Japan Tob competitors beat Japan Tob on 10 of the 15 factors compared.

Japan Tob Company Profile

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.