Otsuka (OTSKF) vs. The Competition Financial Analysis

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otsuka	N/A	N/A	N/A
Otsuka Competitors	-2,471.13%	-250.87%	-16.83%

Insider and Institutional Ownership

12.2% of Otsuka shares are held by institutional investors. Comparatively, 33.0% of shares of all “Pharmaceuticals” companies are held by institutional investors. 14.2% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Otsuka	N/A	N/A	0.26
Otsuka Competitors	$3.47 billion	$3.12 billion	511.25

Otsuka’s peers have higher revenue and earnings than Otsuka. Otsuka 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.

Dividends

Otsuka pays an annual dividend of $55.78 per share and has a dividend yield of 71.9%. Otsuka pays out 18.5% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.7% and pay out 47.7% of their earnings in the form of a dividend. Otsuka is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Otsuka beats its peers on 5 of the 9 factors compared.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.