Disco (DSCSY) vs. The Competition Critical Contrast

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

Insider and Institutional Ownership

0.0% of Disco shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 12.1% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Disco	$2.90 billion	$894.45 million	41.21
Disco Competitors	$11.35 billion	$1.79 billion	44.33

Disco’s competitors have higher revenue and earnings than Disco. Disco 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Disco and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	1	1	0	2.50
Disco Competitors	3371	11998	25176	948	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 24.90%. Given Disco’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Disco has less favorable growth aspects than its competitors.

Volatility & Risk

Disco has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Disco’s competitors have a beta of 1.99, meaning that their average share price is 99% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Disco	31.65%	26.03%	20.56%
Disco Competitors	-245.03%	-123.34%	-4.48%

Dividends

Disco pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Disco pays out 32.2% 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 35.1% of their earnings in the form of a dividend.

Summary

Disco competitors beat Disco on 11 of the 15 factors compared.

Disco Company Profile

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.