Contrasting Disco (DSCSY) and Its Peers

Disco (OTCMKTS:DSCSY) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Disco to related companies based on the strength of its institutional ownership, valuation, dividends, risk, profitability, analyst recommendations and earnings.

Dividends

Disco pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. Disco pays out 29.8% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 28.8% of their earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Disco	$2.90 billion	$894.45 million	30.01
Disco Competitors	$7.38 billion	$2.49 billion	8.76

Disco’s peers have higher revenue and earnings than Disco. Disco 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 Ratings

This is a summary of recent ratings and target prices for Disco and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	0	1	1	3.50
Disco Competitors	3513	12375	25815	1000	2.57

As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 43.05%. Given Disco’s peers higher possible upside, analysts plainly believe Disco has less favorable growth aspects than its peers.

Institutional and Insider Ownership

0.0% of Disco shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Disco	32.04%	27.68%	21.83%
Disco Competitors	-1,278.97%	-126.38%	-4.00%

Volatility and Risk

Disco has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Disco’s peers have a beta of 2.80, meaning that their average stock price is 180% more volatile than the S&P 500.

Summary

Disco peers beat Disco on 8 of the 15 factors compared.

Disco Company Profile

DISCO Corporation develops and manufactures precision processing equipment and tools used in semiconductor and electronic-component production. Its products include grinding, dicing and polishing machines, along with the blades and other consumables used in those processes. The company’s technologies help manufacturers cut, thin and shape semiconductor wafers and other hard, brittle materials. DISCO serves customers in the global semiconductor industry and maintains operations and support for customers in markets around the world.