Head-To-Head Comparison: Alps Electric (OTCMKTS:APELY) versus AUO (OTCMKTS:AUOTY)

AUO (OTCMKTS:AUOTY) and Alps Electric (OTCMKTS:APELY) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Valuation & Earnings

This table compares AUO and Alps Electric”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AUO	$8.73 billion	N/A	-$95.30 million	$0.30	15.13
Alps Electric	$6.50 billion	0.44	$249.72 million	$3.23	8.45

Alps Electric has lower revenue, but higher earnings than AUO. Alps Electric is trading at a lower price-to-earnings ratio than AUO, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AUO and Alps Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AUO	0	0	0	0	0.00
Alps Electric	1	1	0	0	1.50

Insider & Institutional Ownership

0.1% of Alps Electric shares are owned by institutional investors. 16.0% of AUO shares are owned by company insiders. Comparatively, 10.4% of Alps Electric shares are owned 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.

Profitability

This table compares AUO and Alps Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AUO	3.17%	5.77%	2.35%
Alps Electric	4.91%	5.41%	3.03%

Volatility and Risk

AUO has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Alps Electric has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Summary

Alps Electric beats AUO on 6 of the 11 factors compared between the two stocks.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.