Analyzing Fujitsu (FJTSY) and Its Rivals

Fujitsu (OTCMKTS:FJTSY) is one of 272 public companies in the “IT Services” industry, but how does it weigh in compared to its peers? We will compare Fujitsu to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Fujitsu	$23.27 billion	$2.97 billion	42.39
Fujitsu Competitors	$3.24 billion	$227.70 million	-31.68

Fujitsu has higher revenue and earnings than its peers. Fujitsu 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.

Volatility & Risk

Fujitsu has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Fujitsu’s peers have a beta of 2.13, indicating that their average share price is 113% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Fujitsu shares are held by institutional investors. Comparatively, 36.7% of shares of all “IT Services” companies are held by institutional investors. 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fujitsu	N/A	N/A	N/A
Fujitsu Competitors	-191.25%	-37.18%	-8.67%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fujitsu and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	2	0	1	2.67
Fujitsu Competitors	1984	5637	9414	346	2.47

As a group, “IT Services” companies have a potential upside of 24.21%. Given Fujitsu’s peers higher possible upside, analysts clearly believe Fujitsu has less favorable growth aspects than its peers.

Dividends

Fujitsu pays an annual dividend of $0.26 per share and has a dividend yield of 1.1%. Fujitsu pays out 48.1% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 2.3% and pay out 71.2% of their earnings in the form of a dividend.

Summary

Fujitsu beats its peers on 9 of the 15 factors compared.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.