Reviewing Tokyo Electron (OTCMKTS:TOELY) and Crane NXT (NYSE:CXT)

Crane NXT (NYSE:CXT) and Tokyo Electron (OTCMKTS:TOELY) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Risk & Volatility

Crane NXT has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Crane NXT and Tokyo Electron, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crane NXT	0	2	4	1	2.86
Tokyo Electron	0	1	0	0	2.00

Crane NXT currently has a consensus price target of $68.20, indicating a potential upside of 35.08%. Given Crane NXT’s stronger consensus rating and higher probable upside, analysts clearly believe Crane NXT is more favorable than Tokyo Electron.

Dividends

Crane NXT pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Tokyo Electron pays an annual dividend of $1.67 per share and has a dividend yield of 1.0%. Crane NXT pays out 29.8% of its earnings in the form of a dividend. Tokyo Electron pays out 38.2% 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. Crane NXT has increased its dividend for 2 consecutive years. Crane NXT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Crane NXT and Tokyo Electron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crane NXT	$1.66 billion	1.75	$145.10 million	$2.42	20.86
Tokyo Electron	$16.23 billion	9.29	$3.79 billion	$4.37	36.86

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

Insider and Institutional Ownership

77.5% of Crane NXT shares are owned by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are owned by institutional investors. 0.8% of Crane NXT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Crane NXT and Tokyo Electron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crane NXT	7.78%	19.87%	7.43%
Tokyo Electron	23.58%	24.38%	18.03%

About Crane NXT

Crane NXT, Co. operates as an industrial technology company that provides technology solutions to secure, detect, and authenticate customers’ important assets. The company operates through Crane Payment Innovations and Crane Currency segments. The Crane Payment Innovations segment offers electronic equipment and associated software, as well as advanced automation solutions, processing systems, field service solutions, remote diagnostics, and productivity software solutions. The Crane Currency segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, and industrial products. Crane NXT, Co. was incorporated in 2021 and is based in Waltham, Massachusetts.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.