Financial Analysis: Japan Tob (JAPAY) versus Its Competitors

Japan Tob (OTCMKTS:JAPAY) is one of 168 public companies in the “Diversified Consumer Services” industry, but how does it compare to its rivals? We will compare Japan Tob to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Japan Tob	$23.20 billion	$3.42 billion	16.45
Japan Tob Competitors	$3.22 billion	$218.79 million	15.16

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

Volatility and Risk

Japan Tob has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Japan Tob’s rivals have a beta of 0.48, indicating that their average stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Japan Tob and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	1	1	0	2.00
Japan Tob Competitors	1372	3369	5251	188	2.42

Japan Tob currently has a consensus price target of $17.00, indicating a potential downside of 24.58%. As a group, “Diversified Consumer Services” companies have a potential upside of 54.09%. Given Japan Tob’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Japan Tob has less favorable growth aspects than its rivals.

Dividends

Japan Tob pays an annual dividend of $0.51 per share and has a dividend yield of 2.3%. Japan Tob pays out 37.2% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.6% and pay out 45.1% of their earnings in the form of a dividend.

Insider and Institutional Ownership

48.1% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 19.8% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Japan Tob and its rivals’ 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	-2.08%	-39.09%	2.99%

Summary

Japan Tob rivals beat Japan Tob on 9 of the 15 factors compared.

About Japan Tob

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.