Contrasting Makita (MKTAY) and The Competition

Makita (OTCMKTS:MKTAY) is one of 167 public companies in the “Diversified Consumer Services” industry, but how does it compare to its competitors? We will compare Makita to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Dividends

Makita pays an annual dividend of $1.17 per share and has a dividend yield of 3.5%. Makita pays out 57.1% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.8% and pay out 44.9% 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.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Makita	$5.17 billion	$527.55 million	16.21
Makita Competitors	$3.22 billion	$220.89 million	12.61

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.

Institutional and Insider Ownership

48.3% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 1.0% of Makita shares are owned by insiders. Comparatively, 19.7% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Makita has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Makita’s competitors have a beta of 0.48, suggesting that their average share price is 52% less volatile than the S&P 500.

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	10.40%	8.21%	6.95%
Makita Competitors	-1.87%	-18.14%	3.05%

Analyst Recommendations

This is a summary of recent ratings and price targets for Makita and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Makita Competitors	1378	3356	5203	186	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 54.19%. Given Makita’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Makita has less favorable growth aspects than its competitors.

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.