Comparing Omron (OTCMKTS:OMRNY) & nVent Electric (NYSE:NVT)

Omron (OTCMKTS:OMRNY) and nVent Electric (NYSE:NVT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Omron and nVent Electric, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	1	1	0	0	1.50
nVent Electric	0	1	12	4	3.18

nVent Electric has a consensus price target of $190.57, suggesting a potential upside of 21.25%. Given nVent Electric’s stronger consensus rating and higher possible upside, analysts clearly believe nVent Electric is more favorable than Omron.

Insider and Institutional Ownership

1.1% of Omron shares are held by institutional investors. Comparatively, 90.0% of nVent Electric shares are held by institutional investors. 1.7% of nVent Electric shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Omron has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.10 billion	1.26	$188.01 million	$0.95	34.33
nVent Electric	$3.89 billion	6.53	$710.20 million	$3.01	52.22

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omron	3.66%	2.90%	1.95%
nVent Electric	11.37%	16.82%	9.03%

Dividends

Omron pays an annual dividend of $0.47 per share and has a dividend yield of 1.4%. nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Omron pays out 49.5% of its earnings in the form of a dividend. nVent Electric pays out 27.9% 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.

Summary

nVent Electric beats Omron on 16 of the 18 factors compared between the two stocks.

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.

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.