Murata Manufacturing (OTCMKTS:MRAAY – Get Free Report) and Nidec (OTCMKTS:NJDCY – Get Free Report) are both large-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
0.8% of Murata Manufacturing shares are held by institutional investors. Comparatively, 0.2% of Nidec shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Murata Manufacturing and Nidec”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Murata Manufacturing | $12.16 billion | 7.77 | $1.54 billion | $0.47 | 54.96 |
| Nidec | $17.99 billion | 1.74 | -$3.75 billion | ($0.70) | -4.69 |
Murata Manufacturing has higher earnings, but lower revenue than Nidec. Nidec is trading at a lower price-to-earnings ratio than Murata Manufacturing, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Murata Manufacturing has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Nidec has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Profitability
This table compares Murata Manufacturing and Nidec’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Murata Manufacturing | 13.86% | 9.84% | 8.39% |
| Nidec | -17.80% | -27.00% | -13.66% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Murata Manufacturing and Nidec, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Murata Manufacturing | 0 | 1 | 1 | 1 | 3.00 |
| Nidec | 0 | 2 | 0 | 0 | 2.00 |
Summary
Murata Manufacturing beats Nidec on 12 of the 13 factors compared between the two stocks.
About Murata Manufacturing
Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. The company offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID product, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also offers Femtet, a CAE software that solves various engineering challenges; and provides silver oxide battery. In addition, the company provides connectivity, Wifi sensing, IOT, AI, and RFID solutions. Murata Manufacturing Co., Ltd. offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare, medical, personal electronics applications, and other sectors. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.
About Nidec
Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..
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