Comparing Makita (OTCMKTS:MKTAY) and NN (NASDAQ:NNBR)

NN (NASDAQ:NNBR) and Makita (OTCMKTS:MKTAY) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NN and Makita, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NN 0 1 1 0 2.50
Makita 0 1 0 0 2.00

NN currently has a consensus price target of $9.00, indicating a potential upside of 76.13%. Given NN’s stronger consensus rating and higher possible upside, research analysts clearly believe NN is more favorable than Makita.

Risk and Volatility

NN has a beta of 3.28, meaning that its share price is 228% more volatile than the S&P 500. Comparatively, Makita has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares NN and Makita’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NN 32.94% 5.90% 1.50%
Makita 10.66% 10.59% 8.79%

Institutional and Insider Ownership

84.9% of NN shares are owned by institutional investors. Comparatively, 0.2% of Makita shares are owned by institutional investors. 2.1% of NN shares are owned by insiders. Comparatively, 1.0% of Makita shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NN and Makita’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NN $427.53 million 0.51 -$100.59 million ($0.16) -31.94
Makita $5.74 billion 2.96 $582.97 million $2.15 29.06

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

NN Company Profile

NN, Inc. engages in the design and manufacture high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets. It operates through the Mobile Solutions and Power Solutions segments. The Mobile Solutions segment manufactures system critical components for fuel systems, engines and transmissions, power steering systems, and electromechanical motors. The Power Solutions segment designs and produces a broad range of high-precision metal and plastic components, assemblies, and finished devices used in applications ranging from power control to flight control, and for military devices. The company was founded by Richard D. Ennen in October 1980 and is headquartered in Charlotte, NC.

Makita Company Profile

Makita Corp. engages in the production and sale of electric power tools, woodworking machines, and household equipment. It operates through the following segments: Japan, Europe, North America, and Asia. Its products include drilling, fastening, cutting, grinding, sawing, sanding, pneumatic tools, and outdoor power equipment. The company was founded by Mosaburo Makita on March 21, 1915 and is headquartered in Anjo, Japan.

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