Analyzing Tokyo Electron (OTCMKTS:TOELY) & Bel Fuse (NASDAQ:BELFA)

Bel Fuse (NASDAQ:BELFA) and Tokyo Electron (OTCMKTS:TOELY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Dividends

Bel Fuse pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Tokyo Electron pays an annual dividend of $1.67 per share and has a dividend yield of 0.7%. Bel Fuse pays out 5.8% of its earnings in the form of a dividend. Tokyo Electron pays out 40.4% 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. Bel Fuse has increased its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.84%	22.38%	10.02%
Tokyo Electron	23.40%	22.98%	17.30%

Valuation & Earnings

This table compares Bel Fuse 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
Bel Fuse	$675.46 million	5.25	$61.54 million	$4.15	67.20
Tokyo Electron	$16.23 billion	13.91	$3.82 billion	$4.13	58.42

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

Analyst Ratings

This is a summary of current recommendations for Bel Fuse and Tokyo Electron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	1	0	0	2.00
Tokyo Electron	0	0	0	1	4.00

Bel Fuse presently has a consensus price target of $250.00, indicating a potential downside of 10.35%. Given Bel Fuse’s higher possible upside, research analysts plainly believe Bel Fuse is more favorable than Tokyo Electron.

Risk and Volatility

Bel Fuse has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

6.0% of Bel Fuse shares are held by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are held by institutional investors. 4.8% of Bel Fuse shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Tokyo Electron beats Bel Fuse on 10 of the 17 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

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.