Head to Head Contrast: TDK (OTCMKTS:TTDKY) vs. Yaskawa Electric (OTCMKTS:YASKY)

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

Risk & Volatility

TDK has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Yaskawa Electric has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TDK	7.87%	10.01%	4.90%
Yaskawa Electric	6.50%	7.51%	4.47%

Dividends

TDK pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Yaskawa Electric pays an annual dividend of $0.55 per share and has a dividend yield of 0.6%. TDK pays out 8.7% of its earnings in the form of a dividend. Yaskawa Electric pays out 30.4% 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.

Valuation & Earnings

This table compares TDK and Yaskawa Electric”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TDK	$16.64 billion	2.85	$1.30 billion	$0.69	35.33
Yaskawa Electric	$3.62 billion	3.27	$236.12 million	$1.81	50.35

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

Analyst Recommendations

This is a summary of current ratings and target prices for TDK and Yaskawa Electric, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	1	0	1	3.00
Yaskawa Electric	0	2	2	3	3.14

Summary

Yaskawa Electric beats TDK on 8 of the 14 factors compared between the two stocks.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

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.