Financial Analysis: Olympus (OCPNY) and The Competition

Olympus (OTCMKTS:OCPNY) is one of 516 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its rivals? We will compare Olympus to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Profitability

This table compares Olympus and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olympus	13.80%	24.30%	9.30%
Olympus Competitors	-275.67%	-162.27%	-23.09%

Institutional & Insider Ownership

0.0% of Olympus shares are held by institutional investors. Comparatively, 39.9% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Olympus has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Olympus’ rivals have a beta of 2.55, meaning that their average stock price is 155% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Olympus and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olympus	0	0	1	0	3.00
Olympus Competitors	4183	10246	17856	789	2.46

As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 26.91%. Given Olympus’ rivals higher possible upside, analysts clearly believe Olympus has less favorable growth aspects than its rivals.

Dividends

Olympus pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Olympus pays out 9.8% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.3% and pay out 44.0% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Olympus and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Olympus	$7.74 billion	$1.03 billion	21.95
Olympus Competitors	$1.88 billion	$144.06 million	8.37

Olympus has higher revenue and earnings than its rivals. Olympus is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Olympus beats its rivals on 9 of the 15 factors compared.

Olympus Company Profile

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.