Critical Contrast: TDK (TTDKY) & The Competition

TDK (OTCMKTS:TTDKY) is one of 82 public companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it weigh in compared to its rivals? We will compare TDK to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, profitability and earnings.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TDK	$16.64 billion	$1.29 billion	18.16
TDK Competitors	$26.34 billion	$3.72 billion	4.17

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

Dividends

TDK pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. TDK pays out 21.3% of its earnings in the form of a dividend. As a group, “Technology Hardware, Storage & Peripherals” companies pay a dividend yield of 3.3% and pay out 27.4% of their earnings in the form of a dividend.

Institutional and Insider Ownership

51.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 0.0% of TDK shares are owned by insiders. Comparatively, 10.9% of shares of all “Technology Hardware, Storage & Peripherals” 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.

Volatility and Risk

TDK has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, TDK’s rivals have a beta of 1.75, indicating that their average share price is 75% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for TDK and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	0	0	2	4.00
TDK Competitors	1112	4393	7808	379	2.54

As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 78.53%. Given TDK’s rivals higher probable upside, analysts clearly believe TDK has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TDK	8.27%	9.86%	4.84%
TDK Competitors	-113.06%	-31.03%	7.34%

Summary

TDK rivals beat TDK on 9 of the 15 factors compared.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.