Critical Comparison: Toto (TOTDY) and Its Rivals

Toto (OTCMKTS:TOTDY) is one of 93 public companies in the “Building Products” industry, but how does it contrast to its competitors? We will compare Toto to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toto	N/A	N/A	N/A
Toto Competitors	3.78%	40.35%	5.08%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Toto	N/A	N/A	0.19
Toto Competitors	$3.96 billion	$4.66 billion	38.62

Toto’s competitors have higher revenue and earnings than Toto. Toto 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.

Dividends

Toto pays an annual dividend of $0.43 per share and has a dividend yield of 1.1%. Toto pays out 0.2% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 6.8% and pay out 37.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Toto and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toto	0	2	0	0	2.00
Toto Competitors	706	3816	4928	228	2.48

As a group, “Building Products” companies have a potential upside of 25.76%. Given Toto’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Toto has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

0.1% of Toto shares are held by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are held by institutional investors. 10.2% of shares of all “Building Products” companies are held 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.

Summary

Toto competitors beat Toto on 12 of the 13 factors compared.

Toto Company Profile

Toto Ltd. manufactures and sells bathroom and kitchen plumbing fixtures worldwide. It provides sanitary ware comprising toilet basins, urinals, sinks, washbasins, etc.; system toilets; toilet seats; plumbing accessories, etc.; bathtubs; unit bathrooms; and fittings consisting of various faucets, drain fittings, etc. The company also offers modular kitchens; bathroom vanity units; marbright artificial marble counters; bathroom ventilation, heating, and drying systems; and welfare equipment, etc. In addition, it provides green building materials, such as tiles, ceramic slabs, etc.; and ceramics. The company was formerly known as TOTO Kiki Ltd. and changed its name to Toto Ltd. in 2007. Toto Ltd. was incorporated in 1917 and is headquartered in Kitakyushu, Japan.