Financial Survey: Oriental Land (OLCLY) versus Its Competitors

Oriental Land (OTCMKTS:OLCLY) is one of 35 publicly-traded companies in the “HOTELS & MOTELS” industry, but how does it contrast to its peers? We will compare Oriental Land to related businesses based on the strength of its dividends, institutional ownership, valuation, profitability, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

71.1% of shares of all “HOTELS & MOTELS” companies are held by institutional investors. 26.7% of shares of all “HOTELS & MOTELS” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Oriental Land and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Oriental Land	$4.46 billion	$819.46 million	41.62
Oriental Land Competitors	$3.30 billion	$347.52 million	24.90

Oriental Land has higher revenue and earnings than its peers. Oriental Land 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Oriental Land and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oriental Land	0	1	0	0	2.00
Oriental Land Competitors	271	1600	1602	51	2.41

As a group, “HOTELS & MOTELS” companies have a potential upside of 2.05%. Given Oriental Land’s peers stronger consensus rating and higher possible upside, analysts clearly believe Oriental Land has less favorable growth aspects than its peers.

Profitability

This table compares Oriental Land and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oriental Land	18.26%	12.82%	8.82%
Oriental Land Competitors	-12.17%	-49.20%	1.63%

Dividends

Oriental Land pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Oriental Land pays out 14.0% of its earnings in the form of a dividend. As a group, “HOTELS & MOTELS” companies pay a dividend yield of 1.3% and pay out 30.9% of their earnings in the form of a dividend.

Risk & Volatility

Oriental Land has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Oriental Land’s peers have a beta of 1.00, meaning that their average share price is 0% more volatile than the S&P 500.

Summary

Oriental Land peers beat Oriental Land on 8 of the 15 factors compared.

Oriental Land Company Profile

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.