Nidec (NJDCY) and The Competition Critical Survey

Risk & Volatility

Nidec has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Nidec’s rivals have a beta of 0.98, indicating that their average stock price is 3% less volatile than the S&P 500.

Dividends

Nidec pays an annual dividend of $0.05 per share and has a dividend yield of 1.1%. Nidec pays out 20.8% of its earnings in the form of a dividend. As a group, “ELEC – MISC COMPONENTS” companies pay a dividend yield of 1.4% and pay out 41.9% of their earnings in the form of a dividend.

Profitability

This table compares Nidec and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nidec	6.41%	9.56%	4.99%
Nidec Competitors	3.55%	-15.59%	1.49%

Valuation and Earnings

This table compares Nidec and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nidec	$17.12 billion	$1.11 billion	19.38
Nidec Competitors	$2.48 billion	$167.53 million	35.53

Nidec has higher revenue and earnings than its rivals. Nidec is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

0.2% of Nidec shares are held by institutional investors. Comparatively, 61.3% of shares of all “ELEC – MISC COMPONENTS” companies are held by institutional investors. 14.8% of shares of all “ELEC – MISC COMPONENTS” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Nidec beats its rivals on 7 of the 11 factors compared.

Nidec Company Profile

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..