Head-To-Head Comparison: Tokyo Electron (TOELY) versus Its Competitors

Tokyo Electron (OTC:TOELY) is one of 173 publicly-traded companies in the “Semiconductors & related devices” industry, but how does it weigh in compared to its competitors? We will compare Tokyo Electron to similar companies based on the strength of its valuation, earnings, risk, profitability, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Tokyo Electron and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	$2.51 billion	19.22
Tokyo Electron Competitors	$29.53 billion	$592.42 million	52.55

Tokyo Electron’s competitors have higher revenue, but lower earnings than Tokyo Electron. Tokyo Electron is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Tokyo Electron pays an annual dividend of $1.26 per share and has a dividend yield of 1.7%. Tokyo Electron pays out 33.6% of its earnings in the form of a dividend. As a group, “Semiconductors & related devices” companies pay a dividend yield of 1.7% and pay out 47.6% of their earnings in the form of a dividend. Tokyo Electron is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Tokyo Electron has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Tokyo Electron’s competitors have a beta of 1.60, suggesting that their average stock price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are held by institutional investors. 10.0% of shares of all “Semiconductors & related devices” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Tokyo Electron and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	22.63%	28.75%	20.52%
Tokyo Electron Competitors	-470.17%	-79.71%	-11.21%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tokyo Electron and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
Tokyo Electron Competitors	2527	10090	19776	706	2.56

As a group, “Semiconductors & related devices” companies have a potential upside of 662.26%. Given Tokyo Electron’s competitors higher probable upside, analysts plainly believe Tokyo Electron has less favorable growth aspects than its competitors.

Summary

Tokyo Electron beats its competitors on 8 of the 15 factors compared.

Tokyo Electron Company Profile

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.