YASKAWA Electric (OTCMKTS:YASKY) and NXP Semiconductors (NASDAQ:NXPI) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Volatility and Risk
YASKAWA Electric has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.
Profitability
This table compares YASKAWA Electric and NXP Semiconductors' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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YASKAWA Electric | 4.22% | 6.96% | 3.53% |
NXP Semiconductors | -1.70% | 17.16% | 7.78% |
Institutional & Insider Ownership
1.0% of YASKAWA Electric shares are held by institutional investors. Comparatively, 89.0% of NXP Semiconductors shares are held by institutional investors. 0.6% of NXP Semiconductors shares are held 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.
Valuation & Earnings
This table compares YASKAWA Electric and NXP Semiconductors' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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YASKAWA Electric | $3.77 billion | 3.72 | $143.26 million | $1.09 | 98.43 |
NXP Semiconductors | $8.88 billion | 5.82 | $243 million | $8.04 | 22.98 |
NXP Semiconductors has higher revenue and earnings than YASKAWA Electric. NXP Semiconductors is trading at a lower price-to-earnings ratio than YASKAWA Electric, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for YASKAWA Electric and NXP Semiconductors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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YASKAWA Electric | 0 | 1 | 1 | 0 | 2.50 |
NXP Semiconductors | 1 | 6 | 15 | 1 | 2.70 |
NXP Semiconductors has a consensus target price of $178.00, suggesting a potential downside of 2.70%. Given NXP Semiconductors' stronger consensus rating and higher possible upside, analysts clearly believe NXP Semiconductors is more favorable than YASKAWA Electric.
Dividends
YASKAWA Electric pays an annual dividend of $0.34 per share and has a dividend yield of 0.3%. NXP Semiconductors pays an annual dividend of $1.50 per share and has a dividend yield of 0.8%. YASKAWA Electric pays out 31.2% of its earnings in the form of a dividend. NXP Semiconductors pays out 18.7% 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. NXP Semiconductors has increased its dividend for 1 consecutive years. NXP Semiconductors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
NXP Semiconductors beats YASKAWA Electric on 16 of the 18 factors compared between the two stocks.