Critical Analysis: THK (OTCMKTS:THKLY) vs. Screen (OTCMKTS:DINRF)

THK (OTCMKTS:THKLY) and Screen (OTCMKTS:DINRF) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for THK and Screen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THK	1	0	0	1	2.50
Screen	1	0	0	0	1.00

Earnings & Valuation

This table compares THK and Screen”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
THK	$1.61 billion	3.52	-$468.27 million	$0.19	124.98
Screen	$4.11 billion	1.49	$656.49 million	$5.92	10.93

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

Volatility and Risk

THK has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Screen has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Profitability

This table compares THK and Screen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
THK	1.85%	1.93%	1.24%
Screen	14.32%	19.03%	12.23%

Summary

Screen beats THK on 7 of the 11 factors compared between the two stocks.

About THK

THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About Screen

SCREEN Holdings Co., Ltd. develops, manufactures, sells, and maintains semiconductor production equipment in Japan, Taiwan, South Korea, China, the United States, Europe, and internationally. It operates in four segments: Semiconductor Production Equipment Business, Graphic Arts Equipment Business, Display Production Equipment and Coater Business, and PCB-Related Equipment Business. The company offers coat/develop trackers, wafer cleaning systems, annealing systems, measurement systems, inspection systems, and advanced packaging lithography equipment. It also provides coater systems, vacuum film deposition equipment, wet processors, dryers, heaters, exposures, and laminators/de-laminators. In addition, the company offers direct imaging systems, automatic optical inspection systems, automatic optical photomask inspection systems, and defect verification and repair systems; automatic final visual inspection systems; and setup stations and defect tabulation software. Further, it provides high-speed inkjet, label, wide format, CTP, network support, Hiragino font, and other workflow solutions; offset printing, digital book, manual, direct mail, transpromo, label production, package printing, display, and signage solutions; and artificial intelligence, text mining, augmented reality, image analysis, and congestion analysis solutions. Additionally, the company offers biosciences equipment; compact inkjet printing systems for tablets, UV inkjet printing systems for aluminum rolls, and inkjet printing systems for tablets; in-vehicle components for inspection and measurement; and lithium-ion rechargeable batteries and fuel cells. It also undertakes contract manufacturing and support, and intellectual property services related operations. The company was formerly known as Dainippon Screen Mfg. Co., Ltd. and changed its name to SCREEN Holdings Co., Ltd. in October 2014. SCREEN Holdings Co., Ltd. was founded in 1943 and is headquartered in Kyoto, Japan.