Nitto Denko (NDEKY) vs. Its Peers Financial Analysis

Nitto Denko (OTCMKTS:NDEKY) is one of 221 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its peers? We will compare Nitto Denko to related companies based on the strength of its dividends, profitability, risk, institutional ownership, valuation, analyst recommendations and earnings.

Dividends

Nitto Denko pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Nitto Denko pays out 16.8% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 35.3% of their earnings in the form of a dividend. Nitto Denko is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 11.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Nitto Denko and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nitto Denko	12.94%	12.35%	9.83%
Nitto Denko Competitors	-245.03%	-123.34%	-4.48%

Valuation & Earnings

This table compares Nitto Denko and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nitto Denko	$6.83 billion	$886.83 million	16.64
Nitto Denko Competitors	$37.51 billion	$1.79 billion	42.18

Nitto Denko’s peers have higher revenue and earnings than Nitto Denko. Nitto Denko is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for Nitto Denko and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitto Denko	0	1	0	0	2.00
Nitto Denko Competitors	3373	12005	25184	948	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 28.34%. Given Nitto Denko’s peers stronger consensus rating and higher probable upside, analysts plainly believe Nitto Denko has less favorable growth aspects than its peers.

Risk and Volatility

Nitto Denko has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Nitto Denko’s peers have a beta of 3.06, indicating that their average share price is 206% more volatile than the S&P 500.

Summary

Nitto Denko peers beat Nitto Denko on 10 of the 15 factors compared.

About Nitto Denko

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.