Head to Head Comparison: Kyocera (OTCMKTS:KYOCY) versus nVent Electric (NYSE:NVT)

nVent Electric (NYSE:NVT) and Kyocera (OTCMKTS:KYOCY) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Volatility & Risk

nVent Electric has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Kyocera has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Dividends

nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.7%. Kyocera pays an annual dividend of $0.26 per share and has a dividend yield of 1.7%. nVent Electric pays out 19.5% of its earnings in the form of a dividend. Kyocera pays out 52.0% 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. nVent Electric has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares nVent Electric and Kyocera”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nVent Electric	$3.89 billion	5.00	$710.20 million	$4.30	27.98
Kyocera	$13.23 billion	1.66	$159.04 million	$0.50	31.14

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

Profitability

This table compares nVent Electric and Kyocera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nVent Electric	18.25%	15.18%	8.12%
Kyocera	5.09%	3.15%	2.28%

Analyst Ratings

This is a breakdown of current recommendations and price targets for nVent Electric and Kyocera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nVent Electric	0	1	10	0	2.91
Kyocera	0	1	0	0	2.00

nVent Electric presently has a consensus target price of $137.25, indicating a potential upside of 14.09%. Given nVent Electric’s stronger consensus rating and higher possible upside, research analysts plainly believe nVent Electric is more favorable than Kyocera.

Institutional and Insider Ownership

90.1% of nVent Electric shares are held by institutional investors. Comparatively, 7.4% of Kyocera shares are held by institutional investors. 1.8% of nVent Electric shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

nVent Electric beats Kyocera on 14 of the 17 factors compared between the two stocks.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.

About Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.