Analyzing Japan Tob (JAPAY) & Its Peers

Japan Tob (OTCMKTS:JAPAY) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Japan Tob to similar businesses based on the strength of its analyst recommendations, risk, institutional ownership, profitability, valuation, dividends and earnings.

Earnings and Valuation

This table compares Japan Tob and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Japan Tob	$23.20 billion	$3.42 billion	12.40
Japan Tob Competitors	$3.60 billion	$219.82 million	11.59

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

Profitability

This table compares Japan Tob and its competitors’ 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	-3.71%	-28.48%	2.39%

Analyst Recommendations

This is a summary of recent recommendations for Japan Tob and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	0	1	1	2.67
Japan Tob Competitors	1443	3447	5286	197	2.41

Japan Tob currently has a consensus target price of $17.00, suggesting a potential upside of 0.06%. As a group, “Diversified Consumer Services” companies have a potential upside of 62.69%. Given Japan Tob’s competitors higher probable upside, analysts clearly believe Japan Tob has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 19.5% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Japan Tob pays an annual dividend of $0.53 per share and has a dividend yield of 3.1%. Japan Tob pays out 38.7% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.9% and pay out 36.3% of their earnings in the form of a dividend. Japan Tob lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Japan Tob has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Japan Tob’s competitors have a beta of 0.50, suggesting that their average share price is 50% less volatile than the S&P 500.

Summary

Japan Tob competitors beat Japan Tob on 8 of the 15 factors compared.

About Japan Tob

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.