Financial Review: Yaskawa Electric (OTCMKTS:YASKY) and Omron (OTCMKTS:OMRNY)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Yaskawa Electric and Omron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yaskawa Electric	0	1	2	2	3.20
Omron	0	1	0	0	2.00

Earnings and Valuation

This table compares Yaskawa Electric and Omron”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yaskawa Electric	$3.53 billion	2.46	$376.12 million	$1.91	35.02
Omron	$5.26 billion	1.30	$107.39 million	$0.79	42.05

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

Dividends

Yaskawa Electric pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Omron pays an annual dividend of $0.49 per share and has a dividend yield of 1.5%. Yaskawa Electric pays out 29.3% of its earnings in the form of a dividend. Omron pays out 62.0% 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.

Volatility and Risk

Yaskawa Electric has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Omron has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

1.1% of Omron shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Yaskawa Electric and Omron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yaskawa Electric	6.86%	8.18%	4.83%
Omron	2.80%	2.46%	1.68%

Summary

Yaskawa Electric beats Omron on 11 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 Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.