Financial Comparison: Murata Manufacturing (MRAAY) vs. Its Peers

Murata Manufacturing (OTCMKTS:MRAAY) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its peers? We will compare Murata Manufacturing to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

0.8% of Murata Manufacturing shares are owned by institutional investors. Comparatively, 43.3% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 16.4% of shares of all “Electronic Equipment, Instruments & Components” 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.

Valuation and Earnings

This table compares Murata Manufacturing and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Murata Manufacturing	$12.16 billion	$1.54 billion	41.98
Murata Manufacturing Competitors	$4.00 billion	$166.60 million	0.45

Murata Manufacturing has higher revenue and earnings than its peers. Murata Manufacturing is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for Murata Manufacturing and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murata Manufacturing	0	1	1	1	3.00
Murata Manufacturing Competitors	2046	7585	10390	653	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 35.99%. Given Murata Manufacturing’s peers higher probable upside, analysts plainly believe Murata Manufacturing has less favorable growth aspects than its peers.

Volatility and Risk

Murata Manufacturing has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Murata Manufacturing’s peers have a beta of -0.31, meaning that their average stock price is 131% less volatile than the S&P 500.

Dividends

Murata Manufacturing pays an annual dividend of $0.13 per share and has a dividend yield of 0.7%. Murata Manufacturing pays out 27.7% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 70.3% of their earnings in the form of a dividend.

Profitability

This table compares Murata Manufacturing and its peers’ 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%
Murata Manufacturing Competitors	-158.15%	-25.72%	-6.85%

Summary

Murata Manufacturing beats its peers on 10 of the 15 factors compared.

Murata Manufacturing Company Profile

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.