Head-To-Head Review: Makita (MKTAY) vs. Its Peers

Makita (OTCMKTS:MKTAY) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Makita to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.

Dividends

Makita pays an annual dividend of $1.17 per share and has a dividend yield of 3.5%. Makita pays out 54.2% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.9% and pay out 36.2% of their earnings in the form of a dividend. Makita lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Makita has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Makita’s competitors have a beta of 0.49, meaning that their average stock price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

48.4% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 1.0% of Makita shares are owned by insiders. Comparatively, 19.8% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Makita	10.87%	8.60%	7.31%
Makita Competitors	-3.00%	-28.34%	2.46%

Analyst Recommendations

This is a breakdown of recent ratings for Makita and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Makita Competitors	1433	3427	5279	196	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 61.61%. Given Makita’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Makita has less favorable growth aspects than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Makita	$5.17 billion	$524.13 million	15.53
Makita Competitors	$3.24 billion	$219.82 million	11.47

Makita has higher revenue and earnings than its competitors. Makita is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Makita competitors beat Makita on 8 of the 15 factors compared.

Makita Company Profile

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.