Omron (OTCMKTS:OMRNY) vs. Nidec (OTCMKTS:NJDCY) Head-To-Head Analysis

Institutional and Insider Ownership

0.2% of Nidec shares are owned by institutional investors. Comparatively, 1.1% of Omron shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Nidec pays an annual dividend of $0.05 per share and has a dividend yield of 0.9%. Omron pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Nidec pays out 21.7% of its earnings in the form of a dividend. Omron pays out 54.1% 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 Nidec and Omron”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nidec	$17.12 billion	3.08	$1.11 billion	$0.23	24.04
Omron	$5.26 billion	1.02	$107.39 million	$1.11	23.57

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

Profitability

This table compares Nidec and Omron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nidec	6.06%	9.18%	4.79%
Omron	4.04%	3.49%	2.42%

Volatility and Risk

Nidec has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Omron has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Summary

Nidec beats Omron on 9 of the 12 factors compared between the two stocks.

About Nidec

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..

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.