Financial Survey: Disco (DSCSY) vs. Its Peers

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

Volatility and Risk

Disco has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Disco’s rivals have a beta of 2.80, indicating that their average share price is 180% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Disco	32.04%	27.68%	21.83%
Disco Competitors	-1,278.97%	-126.38%	-4.00%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	0	1	1	3.50
Disco Competitors	3513	12375	25815	1000	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 43.05%. Given Disco’s rivals higher possible upside, analysts plainly believe Disco has less favorable growth aspects than its rivals.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Disco	$2.90 billion	$894.45 million	30.01
Disco Competitors	$7.38 billion	$2.49 billion	8.76

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

Insider & Institutional Ownership

0.0% of Disco shares are owned by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Disco pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. Disco pays out 29.8% 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 28.8% of their earnings in the form of a dividend.

Summary

Disco rivals beat Disco on 8 of the 15 factors compared.

Disco Company Profile

DISCO Corporation develops and manufactures precision processing equipment and tools used in semiconductor and electronic-component production. Its products include grinding, dicing and polishing machines, along with the blades and other consumables used in those processes. The company’s technologies help manufacturers cut, thin and shape semiconductor wafers and other hard, brittle materials. DISCO serves customers in the global semiconductor industry and maintains operations and support for customers in markets around the world.