Critical Analysis: Daito Trust Construction (DIFTY) & The Competition

Profitability

This table compares Daito Trust Construction and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daito Trust Construction	N/A	N/A	N/A
Daito Trust Construction Competitors	3.49%	-19.77%	0.45%

Earnings and Valuation

This table compares Daito Trust Construction and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Daito Trust Construction	$12.10 billion	$619.46 million	39.73
Daito Trust Construction Competitors	$3.61 billion	$117.71 million	47.03

Daito Trust Construction has higher revenue and earnings than its rivals. Daito Trust Construction is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

58.4% of shares of all “REAL ESTATE OPS” companies are held by institutional investors. 22.2% of shares of all “REAL ESTATE OPS” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Daito Trust Construction has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Daito Trust Construction’s rivals have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Dividends

Daito Trust Construction pays an annual dividend of $0.16 per share and has a dividend yield of 3.1%. Daito Trust Construction pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “REAL ESTATE OPS” companies pay a dividend yield of 2.1% and pay out 338.3% of their earnings in the form of a dividend. Daito Trust Construction is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Daito Trust Construction rivals beat Daito Trust Construction on 6 of the 11 factors compared.

About Daito Trust Construction

Daito Trust Construction Co.,Ltd. designs, constructs, and rents apartments and condominiums in Japan. It operates through three segments: Construction, Real Estate, and Finance. The company design and construct rental housing and other structure construction; ironwork and construction; building management and renovation, and whole building leasing; rental housing tenant guarantor services; advertising; and LP gas supply businesses. Further, the company operates day service centers and childcare facilities; operates hotels in Malaysia; and bridge financing for general contractors. Additionally, it sells short-term insurance; offers credit card settlements services; rental apartment and condominium brokering services; provides real estate management and asset succession consulting services; and offers document shipping and destruction, printing, and administrative services. The company also engages in development and sale of investment-type apartment properties, and management of facility reservation portal sites. Daito Trust Construction Co.,Ltd. was incorporated in 1974 and is headquartered in Tokyo, Japan.