Reviewing Kyocera (OTCMKTS:KYOCY) and Nidec (OTCMKTS:NJDCY)

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

Risk & Volatility

Kyocera has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Nidec has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

7.4% of Kyocera shares are held by institutional investors. Comparatively, 0.2% of Nidec shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kyocera and Nidec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyocera	0	1	0	0	2.00
Nidec	0	3	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kyocera	5.09%	3.15%	2.28%
Nidec	6.82%	10.15%	5.24%

Earnings and Valuation

This table compares Kyocera and Nidec”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyocera	$13.23 billion	1.70	$159.04 million	$0.50	33.30
Nidec	$17.12 billion	1.98	$1.11 billion	$0.26	13.65

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

Summary

Nidec beats Kyocera on 7 of the 10 factors compared between the two stocks.

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.

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..