Head-To-Head Comparison: Nidec (OTCMKTS:NJDCY) & American Superconductor (AMSC)

Nidec (OTCMKTS: NJDCY) and American Superconductor (NASDAQ:AMSC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Dividends

Nidec pays an annual dividend of $0.18 per share and has a dividend yield of 0.5%. American Superconductor does not pay a dividend. Nidec pays out 20.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Nidec and American Superconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nidec 0 1 1 0 2.50
American Superconductor 0 2 4 0 2.67

Nidec presently has a consensus price target of $16.00, indicating a potential downside of 59.89%. American Superconductor has a consensus price target of $7.08, indicating a potential upside of 5.72%. Given American Superconductor’s stronger consensus rating and higher possible upside, analysts plainly believe American Superconductor is more favorable than Nidec.

Valuation and Earnings

This table compares Nidec and American Superconductor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nidec $11.09 billion 4.26 $1.04 billion $0.87 45.85
American Superconductor $75.19 million 1.87 -$27.37 million ($2.16) -3.10

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

Institutional & Insider Ownership

0.1% of Nidec shares are held by institutional investors. Comparatively, 25.4% of American Superconductor shares are held by institutional investors. 2.6% of American Superconductor 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Nidec 8.69% 13.61% 7.05%
American Superconductor -65.96% -60.92% -36.59%

Volatility and Risk

Nidec has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, American Superconductor has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Summary

Nidec beats American Superconductor on 8 of the 15 factors compared between the two stocks.

Nidec Company Profile

Nidec Corporation manufactures and sells motors and other electronic products worldwide. It offers brushless DC, brush DC, induction, SR, synchronous, servo, and stepping motors, as well as drive circuits; fans and blowers, such as DC axial flow, DC blower, and AC axial flow fans; and machinery, including inspection and measuring systems, automation units, control equipment, marking devices, and optical devices. The company also provides electronic and optical components comprising mechanical system components, optical system units, sensors, and electronic system components; automotive components; hard disk drive components; and other products that include music boxes and pottery craftwork equipment. In addition, it offers hotel services and sells private label products. The company's products have applications in the IT equipment, home appliances, audio and visual equipment, office equipment, healthcare and medical care, industrial equipment, and vehicle/robot industries. Nidec Corporation was founded in 1973 and is headquartered in Kyoto, Japan.

American Superconductor Company Profile

American Superconductor Corporation provides megawatt-scale solutions worldwide. The company operates through two segments, Wind and Grid. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It supplies power electronics and software-based control systems, and provides customer support services to wind turbine manufacturers. This segment's design portfolio comprises a range of drivetrains and power ratings of 2 megawatts. The Grid segment offers products and services that enable electric utilities and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; resilient electric grid systems, which provide protection against the adverse effects that follow the loss of critical substation facilities in urban areas; and ship protection systems, which reduce a naval ship's magnetic signature. This segment also offers flexible alternating current transmission system, a system that consists of power electronics and other static components used for controlling power flow and voltage in the AC transmission system; and standalone fault current limiters, which act as surge protectors for the power grid. American Superconductor Corporation was founded in 1987 and is headquartered in Devens, Massachusetts.

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