Head to Head Analysis: Tokyo Electron (TOELY) & Its Competitors

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

Institutional & Insider 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Tokyo Electron and its peers, as provided 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	2512	10059	19704	702	2.56

As a group, “Semiconductors & related devices” companies have a potential upside of 561.40%. Given Tokyo Electron’s peers higher probable upside, analysts clearly believe Tokyo Electron has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Tokyo Electron and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	$2.51 billion	21.92
Tokyo Electron Competitors	$27.60 billion	$592.32 million	16.94

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

Dividends

Tokyo Electron pays an annual dividend of $1.27 per share and has a dividend yield of 1.5%. Tokyo Electron pays out 33.9% of its earnings in the form of a dividend. As a group, “Semiconductors & related devices” companies pay a dividend yield of 1.5% and pay out 48.1% of their earnings in the form of a dividend. Tokyo Electron is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Tokyo Electron and its peers’ 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%

Volatility & Risk

Tokyo Electron has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Tokyo Electron’s peers have a beta of 1.55, meaning that their average share price is 55% more volatile than the S&P 500.

Summary

Tokyo Electron beats its peers on 9 of the 15 factors compared.

About Tokyo Electron

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.