Reviewing Terumo (TRUMY) and The Competition

Earnings and Valuation

This table compares Terumo and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terumo	$6.80 billion	$772.05 million	32.88
Terumo Competitors	$2.79 billion	$243.17 million	4.05

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

Institutional & Insider Ownership

44.3% of shares of all “MED PRODUCTS” companies are owned by institutional investors. 12.4% of shares of all “MED PRODUCTS” companies are owned 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.

Dividends

Terumo pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. Terumo pays out 34.6% of its earnings in the form of a dividend. As a group, “MED PRODUCTS” companies pay a dividend yield of 1.4% and pay out 40.6% of their earnings in the form of a dividend.

Risk & Volatility

Terumo has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Terumo’s competitors have a beta of 2.72, indicating that their average stock price is 172% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Terumo	11.28%	8.48%	6.37%
Terumo Competitors	-26.13%	-30.13%	-6.94%

Summary

Terumo beats its competitors on 7 of the 11 factors compared.

About Terumo

Terumo Corporation engages in the manufacture and sale of medical products and equipment in Japan, Europe, China, the United States, Asia, and internationally. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.