Reviewing Olympus (OCPNY) & Its Peers

Olympus (OTCMKTS:OCPNY) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its competitors? We will compare Olympus to related businesses based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.

Earnings & Valuation

This table compares Olympus and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Olympus	$7.74 billion	$1.03 billion	21.95
Olympus Competitors	$1.87 billion	$136.27 million	5.88

Olympus has higher revenue and earnings than its competitors. Olympus 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Olympus and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olympus	0	0	1	0	3.00
Olympus Competitors	4291	10580	18364	831	2.46

As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.65%. Given Olympus’ competitors higher probable upside, analysts clearly believe Olympus has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

0.0% of Olympus shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 14.9% of shares of all “Healthcare Equipment & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Olympus and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olympus	13.80%	24.30%	9.30%
Olympus Competitors	-303.57%	-175.14%	-22.20%

Dividends

Olympus pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Olympus pays out 9.8% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.1% and pay out 40.5% of their earnings in the form of a dividend.

Risk and Volatility

Olympus has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Olympus’ competitors have a beta of 2.57, meaning that their average stock price is 157% more volatile than the S&P 500.

Summary

Olympus beats its competitors on 9 of the 15 factors compared.

Olympus Company Profile

Olympus Corporation is a Japan-based medical technology company focused on developing and supplying equipment and services for medical procedures. Its products include gastrointestinal endoscopes and related systems, surgical endoscopes, and endotherapy devices used in diagnosis and treatment. The company’s roots date to 1919, when it was established in Japan as Takachiho Seisakusho to produce microscopes. Over time, Olympus became known for optical products, but it has since exited its camera and scientific solutions businesses to concentrate on medical technology.