Logitech International (NASDAQ:LOGI) & TDK (OTCMKTS:TTDKY) Critical Review

Logitech International (NASDAQ:LOGI) and TDK (OTCMKTS:TTDKY) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

45.8% of Logitech International shares are owned by institutional investors. 0.2% of Logitech International shares are owned by company insiders. Comparatively, 0.0% of TDK shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Logitech International has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, TDK has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Logitech International and TDK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Logitech International	16.28%	37.30%	21.36%
TDK	7.87%	9.15%	4.48%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Logitech International	$4.84 billion	3.13	$711.19 million	$5.45	18.96
TDK	$16.64 billion	2.34	$1.29 billion	$0.68	29.41

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

Analyst Recommendations

This is a summary of current ratings and price targets for Logitech International and TDK, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Logitech International	2	6	2	0	2.00
TDK	0	1	0	1	3.00

Logitech International presently has a consensus price target of $105.29, indicating a potential upside of 1.90%. Given Logitech International’s higher possible upside, analysts clearly believe Logitech International is more favorable than TDK.

Summary

Logitech International beats TDK on 9 of the 15 factors compared between the two stocks.

About Logitech International

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets software-enabled hardware solutions that connect people to working, creating, gaming, and streaming worldwide. The company offers products for gamers and streamers, including mice, racing wheels, headsets, keyboards, microphones, and streaming services; corded and cordless keyboards and keyboard-and-mouse combinations; pointing devices, such as wireless mice and wireless mouse products; conference room cameras, such as ConferenceCams; controllers for video conferencing room solutions; PC-based webcams, including streaming cameras and VC webcams; tablet accessories that includes keyboards for tablets; PC and VC headsets, in-ear headphones, and premium wireless earbuds; and mobile speakers and PC speakers, as well as portable wireless Bluetooth speakers. It sells its products to a network of distributors, retailers, and e-tailers who resell to retailers, value-added resellers, systems integrators, and other distributors. The company sells its products under the Logitech, Logitech G, and others. Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.

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.