Financial Comparison: JTEKT (OTCMKTS:JTEKY) & Strattec Security (NASDAQ:STRT)

JTEKT (OTCMKTS:JTEKY) and Strattec Security (NASDAQ:STRT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Dividends

JTEKT pays an annual dividend of $72.24 per share and has a dividend yield of 183.1%. Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. JTEKT pays out 19.5% of its earnings in the form of a dividend. Strattec Security pays out 9.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

0.0% of JTEKT shares are owned by institutional investors. Comparatively, 68.9% of Strattec Security shares are owned by institutional investors. 3.9% of Strattec Security shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for JTEKT and Strattec Security, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JTEKT	0	0	0	0	0.00
Strattec Security	0	1	1	1	3.00

Profitability

This table compares JTEKT and Strattec Security’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JTEKT	N/A	N/A	N/A
Strattec Security	4.31%	11.00%	7.22%

Valuation and Earnings

This table compares JTEKT and Strattec Security”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JTEKT	N/A	N/A	N/A	$370.33	0.11
Strattec Security	$579.58 million	0.63	$18.68 million	$6.06	14.50

Strattec Security has higher revenue and earnings than JTEKT. JTEKT is trading at a lower price-to-earnings ratio than Strattec Security, indicating that it is currently the more affordable of the two stocks.

Summary

Strattec Security beats JTEKT on 11 of the 13 factors compared between the two stocks.

About JTEKT

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. It offers steering systems, such as electric power steering, hydraulic power steering, and units/components; driveline components, including driveshaft, propeller shaft, spider, couplings, and Torsen limited slip differential products; wheels, such as hub units; engine and peripheral parts that include damper pulley and drive plates; and transmission products, such as electric pump for idle-stop system, shifters, and solenoid valves. The company also provides sensor systems comprising peripherals for social infrastructures; products for the research and development field, including semiconductor transducers, load cells, DC amplifiers, and pressure transducer for welding guns and indicators; medical equipment, such as pressure sensors for dialyzers; and heat-resistant lithium-ion capacitors. In addition, it offers ball and roller bearings; and oil seals and precision mechanical equipments. Further, the company provides machine tools, such as grinders, machining and gear skiving centers, and cutting machines. It offers its products under the JTEKT, KOYO, and TOYODA brands. The company operates in Japan, Africa, Europe, North America, Asia, Oceania, South America, and internationally. JTEKT Corporation was founded in 1921 and is headquartered in Aichi, Japan.

About Strattec Security

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also offers full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.