Financial Contrast: Daikin Industries (OTCMKTS:DKILY) versus Preformed Line Products (NASDAQ:PLPC)

Daikin Industries (OTCMKTS:DKILY) and Preformed Line Products (NASDAQ:PLPC) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Dividends

Daikin Industries pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. Preformed Line Products pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. Daikin Industries pays out 21.9% of its earnings in the form of a dividend. Preformed Line Products pays out 9.3% 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.

Valuation and Earnings

This table compares Daikin Industries and Preformed Line Products”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daikin Industries	$31.21 billion	1.27	$1.75 billion	$0.64	21.19
Preformed Line Products	$593.71 million	1.46	$37.09 million	$8.56	20.60

Daikin Industries has higher revenue and earnings than Preformed Line Products. Preformed Line Products is trading at a lower price-to-earnings ratio than Daikin Industries, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Daikin Industries has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Daikin Industries and Preformed Line Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daikin Industries	6.02%	9.66%	5.35%
Preformed Line Products	6.70%	9.69%	7.09%

Institutional and Insider Ownership

41.2% of Preformed Line Products shares are held by institutional investors. 35.1% of Preformed Line Products shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Daikin Industries and Preformed Line Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daikin Industries	0	1	0	0	2.00
Preformed Line Products	0	0	0	0	0.00

Summary

Preformed Line Products beats Daikin Industries on 8 of the 14 factors compared between the two stocks.

About Daikin Industries

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.

About Preformed Line Products

Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable, data communication, and other industries. The company offers optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was incorporated in 1947 and is headquartered in Mayfield Village, Ohio.