Makita (MKTAY) and The Competition Head-To-Head Analysis
by Teresa Graham · The Cerbat GemMakita (OTCMKTS:MKTAY – Get Free Report) is one of 167 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its rivals? We will compare Makita to similar companies based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.
Insider and Institutional Ownership
48.3% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 1.0% of Makita shares are held by insiders. Comparatively, 19.7% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Makita and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Makita | $5.17 billion | $527.55 million | 15.99 |
| Makita Competitors | $3.23 billion | $220.89 million | 14.01 |
Makita has higher revenue and earnings than its rivals. Makita 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.
Dividends
Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.6%. Makita pays out 57.6% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.9% and pay out 44.9% of their earnings in the form of a dividend. Makita lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Volatility and Risk
Makita has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Makita’s rivals have a beta of 0.48, suggesting that their average stock price is 52% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Makita and its rivals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Makita | 1 | 0 | 0 | 0 | 1.00 |
| Makita Competitors | 1371 | 3348 | 5199 | 186 | 2.42 |
As a group, “Diversified Consumer Services” companies have a potential upside of 57.88%. Given Makita’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Makita has less favorable growth aspects than its rivals.
Profitability
This table compares Makita and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Makita | 10.40% | 8.21% | 6.95% |
| Makita Competitors | -1.89% | -18.18% | 3.04% |
Summary
Makita rivals beat Makita on 8 of the 15 factors compared.
About Makita
Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.