Critical Contrast: Daikin Industries (DKILY) and Its Rivals

Daikin Industries (OTCMKTS:DKILY) is one of 68 public companies in the “ELEC PRODS – MISC” industry, but how does it compare to its peers? We will compare Daikin Industries to related companies based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Daikin Industries and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daikin Industries	0	1	0	0	2.00
Daikin Industries Competitors	261	1568	2152	151	2.53

As a group, “ELEC PRODS – MISC” companies have a potential upside of 1.84%. Given Daikin Industries’ peers stronger consensus rating and higher probable upside, analysts plainly believe Daikin Industries has less favorable growth aspects than its peers.

Profitability

This table compares Daikin Industries and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daikin Industries	5.58%	9.00%	4.95%
Daikin Industries Competitors	-157.71%	-96.39%	-8.84%

Risk and Volatility

Daikin Industries has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Daikin Industries’ peers have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares Daikin Industries and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Daikin Industries	$31.21 billion	$1.75 billion	21.64
Daikin Industries Competitors	$3.75 billion	$270.32 million	7.09

Daikin Industries has higher revenue and earnings than its peers. Daikin Industries is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

49.6% of shares of all “ELEC PRODS – MISC” companies are held by institutional investors. 16.5% of shares of all “ELEC PRODS – MISC” companies are held by 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

Daikin Industries pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Daikin Industries pays out 23.7% of its earnings in the form of a dividend. As a group, “ELEC PRODS – MISC” companies pay a dividend yield of 1.2% and pay out 32.1% of their earnings in the form of a dividend.

Summary

Daikin Industries beats its peers on 8 of the 15 factors compared.

Daikin Industries Company Profile

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.