Japan Tob (JAPAY) & Its Competitors Head to Head Review

Japan Tob (OTCMKTS:JAPAY) is one of 167 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its peers? We will compare Japan Tob to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Dividends

Japan Tob pays an annual dividend of $0.51 per share and has a dividend yield of 2.3%. Japan Tob pays out 37.2% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.8% and pay out 44.7% of their earnings in the form of a dividend.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Japan Tob	$23.20 billion	$3.42 billion	15.86
Japan Tob Competitors	$3.40 billion	$220.89 million	14.01

Japan Tob has higher revenue and earnings than its peers. Japan Tob 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.

Profitability

This table compares Japan Tob and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Tob	N/A	N/A	N/A
Japan Tob Competitors	-1.90%	-339.25%	2.97%

Risk and Volatility

Japan Tob has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Japan Tob’s peers have a beta of 0.48, meaning that their average share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Japan Tob and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	1	1	0	2.00
Japan Tob Competitors	1366	3342	5197	186	2.42

Japan Tob currently has a consensus target price of $17.00, indicating a potential downside of 21.77%. As a group, “Diversified Consumer Services” companies have a potential upside of 57.16%. Given Japan Tob’s peers stronger consensus rating and higher probable upside, analysts clearly believe Japan Tob has less favorable growth aspects than its peers.

Institutional and Insider Ownership

48.3% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 20.1% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Japan Tob peers beat Japan Tob on 9 of the 15 factors compared.

Japan Tob Company Profile

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.