Analyzing Otsuka (OTSKY) and Its Rivals

Otsuka (OTCMKTS:OTSKY) is one of 907 public companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare Otsuka to similar companies based on the strength of its dividends, risk, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

32.8% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 14.1% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Otsuka has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, Otsuka’s competitors have a beta of -3.35, meaning that their average stock price is 435% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Otsuka and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otsuka	1	2	1	0	2.00
Otsuka Competitors	7614	13710	25587	996	2.42

As a group, “Pharmaceuticals” companies have a potential upside of 29.18%. Given Otsuka’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Otsuka has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otsuka	15.50%	12.93%	9.55%
Otsuka Competitors	-2,498.12%	-250.15%	-17.02%

Dividends

Otsuka pays an annual dividend of $0.26 per share and has a dividend yield of 0.6%. Otsuka pays out 10.4% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.7% and pay out 48.3% of their earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Otsuka	$16.51 billion	$2.43 billion	16.26
Otsuka Competitors	$3.47 billion	$3.11 billion	539.20

Otsuka has higher revenue, but lower earnings than its competitors. Otsuka 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.

Summary

Otsuka competitors beat Otsuka on 9 of the 15 factors compared.

Otsuka Company Profile

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.