Critical Analysis: ITOCHU Techno-Solutions (ITTOY) & Its Competitors

ITOCHU Techno-Solutions (OTCMKTS:ITTOY) is one of 138 publicly-traded companies in the “Information Technology Services” industry, but how does it weigh in compared to its rivals? We will compare ITOCHU Techno-Solutions to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares ITOCHU Techno-Solutions and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ITOCHU Techno-Solutions	N/A	N/A	0.11
ITOCHU Techno-Solutions Competitors	$4.13 billion	-$49.28 million	-105.19

ITOCHU Techno-Solutions’ rivals have higher revenue, but lower earnings than ITOCHU Techno-Solutions. ITOCHU Techno-Solutions 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.

Profitability

This table compares ITOCHU Techno-Solutions and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ITOCHU Techno-Solutions	N/A	N/A	N/A
ITOCHU Techno-Solutions Competitors	-20.67%	-120.85%	-3.51%

Analyst Ratings

This is a summary of recent recommendations and price targets for ITOCHU Techno-Solutions and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITOCHU Techno-Solutions	0	2	0	0	2.00
ITOCHU Techno-Solutions Competitors	194	1211	2493	63	2.61

As a group, “Information Technology Services” companies have a potential upside of 29.52%. Given ITOCHU Techno-Solutions’ rivals stronger consensus rating and higher possible upside, analysts plainly believe ITOCHU Techno-Solutions has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

0.0% of ITOCHU Techno-Solutions shares are owned by institutional investors. Comparatively, 36.7% of shares of all “Information Technology Services” companies are owned by institutional investors. 30.8% of shares of all “Information Technology Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

ITOCHU Techno-Solutions pays an annual dividend of $53.63 per share and has a dividend yield of 371.0%. ITOCHU Techno-Solutions pays out 40.4% of its earnings in the form of a dividend. As a group, “Information Technology Services” companies pay a dividend yield of 4.2% and pay out 190.4% of their earnings in the form of a dividend. ITOCHU Techno-Solutions is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

ITOCHU Techno-Solutions rivals beat ITOCHU Techno-Solutions on 7 of the 13 factors compared.

ITOCHU Techno-Solutions Company Profile

ITOCHU Techno-Solutions Corporation engages in the sale, maintenance, and support of computers and network systems, software development, information processing, and support services in Japan, rest of Asia, and internationally. It engages in the provision of information services-related to science and engineering; maintenance, operation, and monitoring services; system and network support, system construction, and IT-related training services; IT systems operation and management, infrastructure operation and management, business and application operation and management, and satellite communications and broadcasting operation services; sale of network and security-related equipment, storage-related devices, software and other peripheral devices, etc., and provision of related consulting, deployment/building and support services, as well as building facility operation and management activities for computer centers; and provision of helpdesk and contact center operation services, IT education and training services, creation of instructional manuals, outbound services and back-office services. The company is also involved in the provision of IT infrastructure building, maintenance, and operation services; exportation of IT products; information gathering, research and marketing activities; resale of hardware and software; sale, installation, and implementation of IT systems and networks and application development; and IT Infrastructure, cloud services, and maintenance services. It serves wholesale/retail, financial institutions, offices and factories, telecommunication, automotive and transport, public and educational institutions, science, and energy and resources industries. The company was founded in 1972 and is headquartered in Tokyo, Japan. ITOCHU Techno-Solutions Corporation operates as a subsidiary of ITOCHU Corporation.