Komatsu (KMTUY) versus The Competition Financial Analysis

Komatsu (OTCMKTS:KMTUY) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it contrast to its competitors? We will compare Komatsu to similar businesses based on the strength of its analyst recommendations, risk, valuation, profitability, institutional ownership, dividends and earnings.

Volatility and Risk

Komatsu has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Komatsu’s competitors have a beta of 5.12, meaning that their average stock price is 412% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Komatsu	0	1	0	2	3.33
Komatsu Competitors	4210	14719	18246	808	2.41

As a group, “Machinery” companies have a potential upside of 29.78%. Given Komatsu’s competitors higher probable upside, analysts plainly believe Komatsu has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Komatsu and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Komatsu	$27.45 billion	$2.48 billion	13.72
Komatsu Competitors	$4.66 billion	$364.17 million	15.78

Komatsu has higher revenue and earnings than its competitors. Komatsu 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Komatsu	8.92%	10.56%	5.94%
Komatsu Competitors	-1,039.02%	-14.89%	0.52%

Dividends

Komatsu pays an annual dividend of $0.89 per share and has a dividend yield of 2.3%. Komatsu pays out 32.0% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend. Komatsu lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

0.2% of Komatsu shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are owned by institutional investors. 2.9% of Komatsu shares are owned by company insiders. Comparatively, 14.3% of shares of all “Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

About Komatsu

Komatsu Ltd. is a Japanese manufacturer of construction, mining, utility and forestry equipment. Its products include excavators, bulldozers, wheel loaders, motor graders and mining trucks, along with machinery and services for forestry operations. The company also provides equipment maintenance, parts and technology solutions, including systems that support fleet management and automated operations. Founded in 1921 and headquartered in Tokyo, Komatsu has expanded from its origins as a Japanese industrial manufacturer into a global equipment and services provider.