Murata Manufacturing (OTCMKTS:MRAAY – Get Free Report) and Vontier (NYSE:VNT – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Risk & Volatility
Murata Manufacturing has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Profitability
This table compares Murata Manufacturing and Vontier’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Murata Manufacturing | 13.86% | 9.84% | 8.39% |
| Vontier | 11.34% | 38.57% | 11.30% |
Earnings & Valuation
This table compares Murata Manufacturing and Vontier”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Murata Manufacturing | $12.16 billion | 5.93 | $1.54 billion | $0.47 | 41.98 |
| Vontier | $3.08 billion | 1.57 | $406.10 million | $2.41 | 14.78 |
Murata Manufacturing has higher revenue and earnings than Vontier. Vontier is trading at a lower price-to-earnings ratio than Murata Manufacturing, indicating that it is currently the more affordable of the two stocks.
Dividends
Murata Manufacturing pays an annual dividend of $0.13 per share and has a dividend yield of 0.7%. Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Murata Manufacturing pays out 27.7% of its earnings in the form of a dividend. Vontier pays out 4.1% 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.
Insider & Institutional Ownership
0.8% of Murata Manufacturing shares are held by institutional investors. Comparatively, 95.8% of Vontier shares are held by institutional investors. 1.1% of Vontier shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Murata Manufacturing and Vontier, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Murata Manufacturing | 0 | 1 | 1 | 1 | 3.00 |
| Vontier | 1 | 3 | 4 | 0 | 2.38 |
Vontier has a consensus target price of $41.00, indicating a potential upside of 15.07%. Given Vontier’s higher probable upside, analysts clearly believe Vontier is more favorable than Murata Manufacturing.
Summary
Murata Manufacturing beats Vontier on 9 of the 17 factors compared between the two stocks.
About Murata Manufacturing
Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. The company offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID product, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also offers Femtet, a CAE software that solves various engineering challenges; and provides silver oxide battery. In addition, the company provides connectivity, Wifi sensing, IOT, AI, and RFID solutions. Murata Manufacturing Co., Ltd. offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare, medical, personal electronics applications, and other sectors. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.
About Vontier
Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.
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