Financial Analysis: Yaskawa Electric (OTCMKTS:YASKY) versus TTM Technologies (NASDAQ:TTMI)

Yaskawa Electric (OTCMKTS:YASKY) and TTM Technologies (NASDAQ:TTMI) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Institutional & Insider Ownership

95.8% of TTM Technologies shares are held by institutional investors. 1.3% of TTM Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Yaskawa Electric and TTM Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yaskawa Electric	0	1	2	2	3.20
TTM Technologies	0	0	5	1	3.17

TTM Technologies has a consensus price target of $76.50, suggesting a potential upside of 7.91%. Given TTM Technologies’ higher probable upside, analysts clearly believe TTM Technologies is more favorable than Yaskawa Electric.

Valuation & Earnings

This table compares Yaskawa Electric and TTM Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yaskawa Electric	$3.53 billion	2.16	$376.12 million	$2.99	19.64
TTM Technologies	$2.44 billion	3.00	$56.30 million	$1.26	56.26

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

Volatility & Risk

Yaskawa Electric has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, TTM Technologies has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Profitability

This table compares Yaskawa Electric and TTM Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yaskawa Electric	10.72%	13.12%	7.72%
TTM Technologies	4.74%	13.21%	6.03%

Summary

TTM Technologies beats Yaskawa Electric on 8 of the 15 factors compared between the two stocks.

About Yaskawa Electric

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. The company was founded in 1915 and is headquartered in Kitakyushu, Japan.

About TTM Technologies

TTM Technologies, Inc., together with its subsidiaries, manufactures and sells mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and printed circuit boards (PCB) worldwide. The company operates in two segments, PCB and RF&S Components. It offers range of engineered systems, RF and microwave assemblies, HDI PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, IC substrates, passive RF components, advanced ceramic RF components, hi-reliability multi-chip modules, beamforming and switching networks, PCB products, RF components, and backplane/custom assembly solutions, including conventional PCBs. It also provides advanced ceramic RF components including standard and etched thick-film ceramic substrates; and hi-reliability multi-chip modules. In addition, the company offers radar systems including maritime surveillance and weather avoidance radar systems, surveillance products, communication systems, RF assembly and test services, and passive RF components. Further, the company provides custom designed application specific integrated circuits, high density interconnect, IC substrates, flexible and rigid flex PCBs, and custom assemblies including backplane and mid-plane assemblies, flexible and rigid-flex assemblies, and RF assemblies, as well as conventional PCBs, such as single-sided, double-sided, and multi-layer boards. Additionally, it offers quick turnaround services, which includes prototype production and ramp-to-volume production, and thermal management. The company serves original equipment manufacturers and electronic manufacturing services providers, original design manufacturers, distributors, and government agencies; and aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, as well as networking applications. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.