Kone Oyj (OTCMKTS:KNYJY) versus Murata Manufacturing (OTCMKTS:MRAAY) Head-To-Head Contrast

Kone Oyj (OTCMKTS:KNYJY) and Murata Manufacturing (OTCMKTS:MRAAY) are both large-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Dividends

Kone Oyj pays an annual dividend of $0.42 per share and has a dividend yield of 1.3%. Murata Manufacturing pays an annual dividend of $0.14 per share and has a dividend yield of 1.7%. Kone Oyj pays out 40.8% of its earnings in the form of a dividend. Murata Manufacturing pays out 35.9% 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. Murata Manufacturing is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Kone Oyj and Murata Manufacturing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kone Oyj	$12.01 billion	2.35	$1.03 billion	$1.03	30.29
Murata Manufacturing	$11.45 billion	2.67	$1.54 billion	$0.39	21.03

Murata Manufacturing has lower revenue, but higher earnings than Kone Oyj. Murata Manufacturing is trading at a lower price-to-earnings ratio than Kone Oyj, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Kone Oyj and Murata Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kone Oyj	1	1	0	0	1.50
Murata Manufacturing	0	0	0	0	0.00

Risk & Volatility

Kone Oyj has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Murata Manufacturing has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Kone Oyj and Murata Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kone Oyj	8.69%	39.38%	11.08%
Murata Manufacturing	12.51%	8.51%	7.28%

Institutional & Insider Ownership

0.8% of Murata Manufacturing shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Murata Manufacturing beats Kone Oyj on 7 of the 13 factors compared between the two stocks.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.

About Murata Manufacturing

Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. The company offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID product, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also offers Femtet, a CAE software that solves various engineering challenges; and provides silver oxide battery. In addition, the company provides connectivity, Wifi sensing, IOT, AI, and RFID solutions. Murata Manufacturing Co., Ltd. offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare, medical, personal electronics applications, and other sectors. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.