An Analysis of Consumer Sector Outliers VSTO, HAR, RAI, and SNE
Sony and its peers
In this article, we’ll compare Sony Corporation (SNE) with its peers as of January 5, 2016. First, let’s compare SNE and its peers based on PE (price-to-earnings) ratio:
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Sony — 36.9x
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Canon (CAJ) — 17.9x
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Harman International Industries (HAR) — 19.8x
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Dolby Laboratories (DLB) — 19.2x
Now let’s look at PBV (price-to-book value) ratios:
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Sony — 1.5x
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Canon — 1.4x
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Harman International Industries — 2.9x
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Dolby Laboratories — 1.9x
According to the above findings, the peers have mostly outperformed Sony Corporation based on PBV. However, Sony Corporation is ahead of its peers based on PE.
ETFs that invest in Sony
The Vanguard FTSE Pacific ETF (VPL) invests 0.56% of its holdings in Sony.
The Vanguard FTSE Developed Markets ETF (VEA) invests 0.22% of its holdings in Sony. The ETF tracks a market-cap–weighted index of large- and mid-cap stocks from developed markets outside the United States, dynamically transitioning to include small caps and Canadian stocks.
The Vanguard FTSE All-World ex-US ETF (VEU) invests 0.16% of its holdings in Sony. The ETF is designed to track a market-cap–weighted index of large- and mid-cap global non-US stocks.
Sony and its ETFs
Now let’s compare Sony with the ETFs that invest in it:
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The year-to-date price movements of Sony, VPL, VEA, and VEU are 3.5%, -1.6%, -1.5%, and -1.7%, respectively.
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The PE ratios of Sony, VPL, VEA, and VEU are 36.9x, 15.7x, 18.4x, and 15.1x, respectively.
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The PBV ratios of Sony, VPL, VEA, and VEU are 1.5x, 1.3x, 1.6x, and 1.6x, respectively.
According to the above findings, these ETFs have mostly outperformed Sony based on PBV. However, Sony is far ahead of its ETFs based on price movement and PE.
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