Select Page
QuestionsCategory: Financials QuadrantCompare with industrial peers
Zhi Ming Cheah asked 2 years ago

What are the website you guys use to compare the company you researching with industrial peers besides manually looking at the annual report of each company in that industry?
I know one of the websites that that provides such comparision is Reuters.
However, it does not have SGA ratio, Debt to cash flow & CCC ratio( or receivable days or payable days).

9 Answers
Jieren Zheng answered 2 years ago

Be careful of using those numbers, sometimes the script that pulls out the numbers don’t get the right ones or do not adjust.

Morningstar used to be a good resource, brokerage reports sometimes do help too.

I normally use a rough comparison by screeners then look further into the annual reports to verify.

Zhi Ming Cheah replied 2 years ago

Thanks but I have checked morningstar, I think the compare with peers feature in morningstar is a premium feature. Thanks anyway

Victor Chng answered 2 years ago

Hi Zhi Ming,
 
Another way to find competitors is to read analyst report. Once you identify them, it is best to collect the data yourself for comparison (as what mentioned by jieren) than relying on third party source as their data may be different from ours. 

Sharon answered 1 year ago

Hello, I’m a complete newbie investor and just joined IQ recently to kickstart on my investing journey.
A lot of the ratios taught encourage us to compare with industry peers to get a sense of whether it is reasonable. I have 2 questions:
1) how do I find out who are the industry peers and where can I find more information?
I’ve tried using Reuters as suggested above (by Zhiming), but cannot find any information from the Company’s page I’m looking at, to see whom its peers are. 
2) Victor mentioned to read analyst reports.
a) Where can I find these analyst reports? 
b) What if the company is not a popular company and is not covered by analysts?
Thank you!
 
 

Zhi Ming Cheah replied 1 year ago

yeah, reuters only have big companies or companies that exist for quite some time.
I can only give recommendation on Malaysia market.

1) You can find the industry peers by checking at

https://www.bursamarketplace.com/mkt/themarket/bursamids/

then find the company you are interested. For instance, i am interest in Dufu. Search for dufu, then click on research.
This answers your 2(a) question also. you can find analyst reports here.
Click on alpha indicator report. At there, they will compare up to 10 companies.

https://www.bursamarketplace.com/mkt/themarket/stock/DUFU/research

1) Where can you find more information about industry peers ? Ok, there is an easy and hard way.
a) Hard way is getting financial info from
– website that give out for free such as “morningstar”, yahoo finance, etc where those ratio, you need to calculate by yourself (using the template given in investment quadrant).
– manually pluck the numbers from annual report.

b) easy way : get from website that compiles the financial data for each company.
I am using “shareinvestor”, where it has stock comparison up to 10 stocks. It is a paid subscription ( Rm 623 for msia market only). The link below will show what it compare.

https://www.shareinvestor.com/help/fundamental-stocks_comparison-si.html

2b) i usually read analyst report to quickly know their business segment, their growth plans, but not on their ” projected growth or their consensus estimate for share price. so if analyst didnt cover, have to go through annual report i guess, just read abt their business, ceo statement, growth plan..etc.

Good luck.

Zhi Ming Cheah replied 1 year ago

Bonus for you:
share investor comparison for industry peer, this is what i use to compare :
-growth ratio : revenue growth & net earning growth
-profitability ratio: GPM & NPM
-quality of earning
– roe & roa
– total asset turnover
– debt to NP, debt to cash flow, interest coverage, total debt to equity
– Current ratio, cash ratio.

basically, when comparing, i make a scoring system and make sure that the company i am researching scores above average to put into my watchlist.
if there is another company that scores better, i will research that new company to know deeper about it. Good luck.

Victor Chng replied 1 year ago

Great information Zhi Ming

Victor Chng answered 1 year ago

Hi Sharon,

Finding competitors are never an easy way because not all competitors shown in the analyst reports are apple to apple comparison. To be honest, not many companies of direct comparison are listed in the stock exchange.

The focus is still the company itself, whether they are recurring in nature, strong economic moats, growth driver with manageable risk.

You can try using Financial Times to look for competitors. https://markets.ft.com/data/equities/tearsheet/profile?s=HARTA:KLS (Key in the company name and click on profile, there will be a peer analysis at the bottom.) Do note that not all companies in the peer analysis are direct comparison. Hence, you have to go read up on those companies and select those that are direct.

Sharon answered 1 year ago

Thanks Zhiming and Victor!
I am not invested in the Malaysia market, but this information is good to know if ever I want to invest in the M’sia market. Such a useful feature (research/Alpha Indicator report/peers) that Bursa Marketplace provides!
Zhiming – re: shareinvestor.com 
Does it pick up financial data accurately from the Company’s financial reports?
I have noticed that some free websites do not pick up the financial data accurately.
The stock comparison tool is a useful feature, but again, you would need to know who are the peers to compare to.
I agree that companies of direct comparison are difficult to find, especially when using the industry classification provided by stock exchanges. I usually have to go into each company’s profile page to read their profile to find comparables. And even then, I need to find at least 2-3 comparables to make a meaning comparison. Very time consuming indeed.
The Financial Times link helps narrow down the number of companies’ profile pages I have to scan through, and is useful as a quick start, but not very accurate either. For eg. I tested with DBS and expected to see OCBC and UOB as peers, but other international banks (eg. Mizuho, Hang Seng, ANZ etc) were listed.
Which invokes another question – when we are looking for peers, do we look globally for our peer comparison of metrics? Or within its own local market? Or within its own geographical region?
Victor – could you share where we can obtain analyst reports? (for eg. the RHB one that was shared in the course)
Are these publicly available? Or do we need to email in to the analysts to request? Or is it a paid subscription kind of thing?
Thank you for taking the time to read and answer my questions. Very much appreciated!
 

Victor Chng answered 1 year ago

Hi Sharon,
 
1.Regarding Shareinvestor data collection, there will be occasionally wrong data being pick up.
 
2. I will look for peers that are in the same region as them.
 
3. When I look at a specific company, I will usually called my broker to get the analyst report for me. Most brokers have access to bloomberg terminal which is easy for them to get analyst report. For SG companies, you can get the analyst report here. https://sginvestors.io/
 
 

Sharon answered 1 year ago

Thank you! The link to sginvestors is very useful!
On Bloomberg terminal, may I confirm that analyst reports (pdfs?) from the various brokerage/research houses will be available and downloadable from a Bloomberg terminal?
I could possibly get access to a Bloomberg terminal occasionally (…but will likely need a tutorial on how to extract these analyst reports..)

Victor Chng answered 1 year ago

Hi Sharon,
 
Yes, you can get analyst report on Bloomberg terminal but provided that terminal got pay extra amount to get access to research report. Personally, I have not use Bloomberg terminal before so I am unable to guide you on how to extract the analyst report. 

Sharon answered 1 year ago

Thank you for all the comments! Much appreciated! :)

Victor Chng replied 1 year ago

Welcome :)