Toray Industries (TRYIY) and The Competition Critical Comparison

Toray Industries (OTCMKTS:TRYIY) is one of 296 public companies in the “Chemicals” industry, but how does it contrast to its peers? We will compare Toray Industries to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Dividends

Toray Industries pays an annual dividend of $0.15 per share and has a dividend yield of 0.9%. Toray Industries pays out 18.3% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Toray Industries and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Toray Industries	$17.17 billion	$524.84 million	21.19
Toray Industries Competitors	$6.34 billion	$229.42 million	19.99

Toray Industries has higher revenue and earnings than its peers. Toray Industries 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 breakdown of recent ratings and target prices for Toray Industries and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toray Industries	0	1	0	1	3.00
Toray Industries Competitors	3272	12239	14149	521	2.39

As a group, “Chemicals” companies have a potential upside of 7.63%. Given Toray Industries’ peers higher probable upside, analysts plainly believe Toray Industries has less favorable growth aspects than its peers.

Insider & Institutional Ownership

47.4% of shares of all “Chemicals” companies are held by institutional investors. 13.7% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toray Industries	3.48%	4.84%	2.66%
Toray Industries Competitors	-54.14%	-0.61%	-1.37%

Volatility and Risk

Toray Industries has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Toray Industries’ peers have a beta of 0.94, meaning that their average stock price is 6% less volatile than the S&P 500.

Summary

Toray Industries beats its peers on 9 of the 15 factors compared.

Toray Industries Company Profile

Toray Industries is a Japanese materials and chemicals company with operations spanning fibers and textiles, performance chemicals, carbon-fiber composite materials, environmental solutions, and life sciences. Its products include synthetic fibers and fabrics, plastics and films, carbon fiber, and water-treatment membranes. Founded in 1926 as Toyo Rayon, the company initially focused on rayon and later expanded into a broad range of advanced materials and technologies. It adopted the name Toray Industries in 1970.