Financial Review: MINEBEA MITSUMI (OTCMKTS:MNBEY) & ESPEY MFG & ELECTRONICS (NYSE:ESP)

Earnings & Valuation

This table compares ESPEY MFG & ELECTRONICS and MINEBEA MITSUMI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESPEY MFG & ELECTRONICS	$45.97 million	2.50	$7.59 million	$2.68	15.13
MINEBEA MITSUMI	$10.01 billion	N/A	$613.52 million	$2.20	17.35

MINEBEA MITSUMI has higher revenue and earnings than ESPEY MFG & ELECTRONICS. ESPEY MFG & ELECTRONICS is trading at a lower price-to-earnings ratio than MINEBEA MITSUMI, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ESPEY MFG & ELECTRONICS and MINEBEA MITSUMI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESPEY MFG & ELECTRONICS	N/A	N/A	N/A
MINEBEA MITSUMI	4.81%	10.06%	4.81%

Dividends

ESPEY MFG & ELECTRONICS pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. MINEBEA MITSUMI pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. ESPEY MFG & ELECTRONICS pays out 37.3% of its earnings in the form of a dividend. MINEBEA MITSUMI pays out 20.0% 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. ESPEY MFG & ELECTRONICS has raised its dividend for 1 consecutive years. ESPEY MFG & ELECTRONICS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

36.7% of ESPEY MFG & ELECTRONICS shares are held by institutional investors. 6.8% of ESPEY MFG & ELECTRONICS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

ESPEY MFG & ELECTRONICS has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, MINEBEA MITSUMI has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Summary

MINEBEA MITSUMI beats ESPEY MFG & ELECTRONICS on 8 of the 13 factors compared between the two stocks.

About ESPEY MFG & ELECTRONICS

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States and internationally. The company’s principal products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, antennas, and high-power radar systems for use in AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power applications. It also provides various services comprising design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment. In addition, the company produces individual components, such as inductors, printed circuit boards, wires, and tests items. It serves industrial manufacturers and defense companies, the government of the United States, foreign governments, and foreign electronic equipment companies through its direct sales organization and outside sales representatives. The company was incorporated in 1928 and is based in Saratoga Springs, New York.

About MINEBEA MITSUMI

Minebea Mitsumi, Inc. engages in the manufacture and sale of high precision ball bearings and components for IT (Information Technology), telecommunications, aerospace, automotive, and home appliance industries. It operates through the following segments: Machined Components, Electronic Devices and Components, Mitsumi Electric Products, and Others. The Machined Components segment provides mechanical parts such as ball bearings, rod-end bearings, hard disk drive pivot assemblies, and aircraft screws. The Electronic Devices and Components segment offers LED backlights, sensor devices, stepping motors, fan motors, hard disk drive spindle motors, precision motors, and other special devices. The Mitsumi Electric Products segment handles the semiconductor, optical, mechanical, high frequency, and power supply devices. The Others segment deals with the in-house produced machines. The company was founded on July 16, 1951 and is headquartered in Tokyo, Japan.