Head-To-Head Survey: West Japan Railway (WJRYY) versus Its Competitors

West Japan Railway (OTCMKTS:WJRYY) is one of 102 publicly-traded companies in the “Ground Transportation” industry, but how does it weigh in compared to its rivals? We will compare West Japan Railway to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Valuation & Earnings

This table compares West Japan Railway and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
West Japan Railway	$12.26 billion	$846.98 million	11.06
West Japan Railway Competitors	$8.60 billion	$895.12 million	48.52

West Japan Railway has higher revenue, but lower earnings than its rivals. West Japan Railway is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

59.7% of shares of all “Ground Transportation” companies are owned by institutional investors. 15.2% of shares of all “Ground Transportation” companies are owned by 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 West Japan Railway and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Japan Railway	6.41%	9.36%	3.21%
West Japan Railway Competitors	5.40%	9.33%	3.79%

Analyst Ratings

This is a summary of recent ratings and target prices for West Japan Railway and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Japan Railway	1	0	0	0	1.00
West Japan Railway Competitors	1333	6317	8402	251	2.46

As a group, “Ground Transportation” companies have a potential upside of 11.69%. Given West Japan Railway’s rivals stronger consensus rating and higher probable upside, analysts clearly believe West Japan Railway has less favorable growth aspects than its rivals.

Dividends

West Japan Railway pays an annual dividend of $0.38 per share and has a dividend yield of 2.1%. West Japan Railway pays out 22.8% of its earnings in the form of a dividend. As a group, “Ground Transportation” companies pay a dividend yield of 1.4% and pay out 28.0% of their earnings in the form of a dividend. West Japan Railway is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk and Volatility

West Japan Railway has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, West Japan Railway’s rivals have a beta of 1.11, meaning that their average share price is 11% more volatile than the S&P 500.

Summary

West Japan Railway rivals beat West Japan Railway on 10 of the 15 factors compared.

West Japan Railway Company Profile

West Japan Railway Company provides railway transport services in Japan. The company operates through Mobility, Retail, Real Estate, Travel and Regional Solutions, and Other segments. The Mobility segment provides passenger transportation, station operation and management, cleaning and maintenance, construction, machinery and equipment installation, rolling stock and other facility construction services, as well as engages in the railway operations and electric works. The Retail segment sells goods; offers food and other wholesale operation services; and operates department stores. The Real Estate segment sells and leases real estate properties, as well as operates shopping centers and hotels. The Travel and Regional Solutions segment provides travel agency and regional solutions. The Other segment engages in the advertising and other businesses. The company is also involved in the operation of convenience stores, restaurants, and souvenir shops; and provision of credit cards and electronic money services. The company was incorporated in 1987 and is based in Osaka, Japan.