Financial Analysis: Canon (CAJPY) versus Its Rivals

Canon (OTCMKTS:CAJPY) is one of 82 public companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it weigh in compared to its competitors? We will compare Canon to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Insider and Institutional Ownership

51.6% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 0.0% of Canon shares are owned by insiders. Comparatively, 11.0% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Canon pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Canon pays out 30.5% of its earnings in the form of a dividend. As a group, “Technology Hardware, Storage & Peripherals” companies pay a dividend yield of 4.1% and pay out 39.8% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canon	7.54%	9.52%	5.65%
Canon Competitors	-91.68%	-30.13%	7.72%

Earnings & Valuation

This table compares Canon and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canon	$29.46 billion	$2.22 billion	11.26
Canon Competitors	$25.41 billion	$4.16 billion	3.37

Canon has higher revenue, but lower earnings than its competitors. Canon 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.

Risk & Volatility

Canon has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Canon’s competitors have a beta of 1.76, meaning that their average stock price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Canon and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canon	0	1	0	0	2.00
Canon Competitors	1119	4398	7816	380	2.54

As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 58.23%. Given Canon’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Canon has less favorable growth aspects than its competitors.

Summary

Canon competitors beat Canon on 10 of the 15 factors compared.

Canon Company Profile

Canon Inc. is a Japanese technology company that develops and manufactures imaging, printing, medical, and industrial products. Its offerings include digital cameras and lenses, office and production printers, scanners, and related software and services. The company also supplies medical imaging equipment and industrial technologies, including semiconductor lithography and other manufacturing equipment. Canon serves consumers, businesses, and public-sector organizations in markets around the world.