Makita (OTCMKTS:MKTAY) and Taiyo Yuden (OTCMKTS:TYOYY) Head to Head Survey

Taiyo Yuden (OTCMKTS:TYOYY) and Makita (OTCMKTS:MKTAY) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Taiyo Yuden and Makita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taiyo Yuden	N/A	N/A	N/A
Makita	10.40%	8.21%	6.95%

Earnings and Valuation

This table compares Taiyo Yuden and Makita”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taiyo Yuden	N/A	N/A	N/A	$117.37	0.15
Makita	$5.17 billion	1.74	$527.55 million	$2.05	16.57

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

Dividends

Taiyo Yuden pays an annual dividend of $1.62 per share and has a dividend yield of 9.4%. Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.5%. Taiyo Yuden pays out 1.4% of its earnings in the form of a dividend. Makita pays out 57.6% 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. Taiyo Yuden is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Taiyo Yuden and Makita, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taiyo Yuden	1	1	0	0	1.50
Makita	1	0	0	0	1.00

Summary

Makita beats Taiyo Yuden on 5 of the 9 factors compared between the two stocks.

About Taiyo Yuden

Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components in Japan, China, Hong Kong, and internationally. It offers multilayer ceramic capacitors, inductors, RF devices, power storage devices, piezoelectric actuators, smell sensor, and reliability products for automotives and industrial equipment, as well as conductive polymer hybrid aluminum electrolytic capacitors. Taiyo Yuden Co., Ltd. was incorporated in 1950 and is headquartered in Tokyo, Japan.

About Makita

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.