Head-To-Head Comparison: Disco (DSCSY) versus Its Competitors

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Disco	31.65%	26.03%	20.56%
Disco Competitors	-244.98%	-123.32%	-4.47%

Volatility and Risk

Disco has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Disco’s peers have a beta of 3.10, indicating that their average share price is 210% more volatile than the S&P 500.

Valuation & Earnings

This table compares Disco and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Disco	$2.90 billion	$894.45 million	41.43
Disco Competitors	$6.74 billion	$1.99 billion	45.12

Disco’s peers have higher revenue and earnings than Disco. Disco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Disco pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Disco pays out 32.2% 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 35.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Disco and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	1	1	0	2.50
Disco Competitors	3379	12019	25208	950	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 23.49%. Given Disco’s peers stronger consensus rating and higher possible upside, analysts clearly believe Disco has less favorable growth aspects than its peers.

Institutional and Insider 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. 11.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Disco peers beat Disco on 11 of the 15 factors compared.

Disco Company Profile

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.