Komatsu (KMTUY) and Its Competitors Critical Review

Komatsu (OTCMKTS:KMTUY) is one of 436 public companies in the “Machinery” industry, but how does it weigh in compared to its rivals? We will compare Komatsu to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.

Insider & Institutional Ownership

0.2% of Komatsu shares are held by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are held by institutional investors. 2.9% of Komatsu shares are held by insiders. Comparatively, 14.1% of shares of all “Machinery” companies are held 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.

Analyst Recommendations

This is a summary of recent ratings for Komatsu and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Komatsu	0	1	0	2	3.33
Komatsu Competitors	4215	14730	18259	809	2.41

As a group, “Machinery” companies have a potential upside of 30.58%. Given Komatsu’s rivals higher probable upside, analysts plainly believe Komatsu has less favorable growth aspects than its rivals.

Profitability

This table compares Komatsu and its rivals’ 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	-1,035.50%	-36.21%	-0.24%

Risk and Volatility

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

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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Komatsu	$27.45 billion	$2.48 billion	13.99
Komatsu Competitors	$4.62 billion	$362.62 million	6.33

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

Summary

Komatsu beats its rivals 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.