Head to Head Review: Obic (OBIIF) and Its Rivals

Obic (OTCMKTS:OBIIF) is one of 273 publicly-traded companies in the “IT Services” industry, but how does it weigh in compared to its rivals? We will compare Obic to related companies based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Obic	$898.19 million	$496.26 million	32.09
Obic Competitors	$3.25 billion	$223.00 million	-20.19

Obic’s rivals have higher revenue, but lower earnings than Obic. Obic is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Obic and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Obic	56.93%	16.24%	13.71%
Obic Competitors	-191.45%	-32.71%	-8.33%

Volatility & Risk

Obic has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Obic’s rivals have a beta of 2.15, meaning that their average stock price is 115% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Obic and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obic	0	1	0	0	2.00
Obic Competitors	2014	5689	9515	344	2.47

As a group, “IT Services” companies have a potential upside of 24.45%. Given Obic’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Obic has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

36.4% of shares of all “IT Services” companies are owned by institutional investors. 20.4% of shares of all “IT Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Obic rivals beat Obic on 8 of the 13 factors compared.

Obic Company Profile

Obic Co., Ltd. is a Japanese information technology company that provides business software and systems integration services. Founded in 1968, the company is headquartered in Tokyo and primarily serves businesses in Japan. Its offerings include OBIC7, an integrated enterprise software suite designed to support functions such as accounting, human resources, sales management and production management. Obic also provides consulting, system planning and development, implementation, and ongoing operational support.