Financial Survey: Kyocera Corporation (KYO) vs. Emerson Electric Company (EMR)
Kyocera Corporation (NYSE: KYO) and Emerson Electric Company (NYSE:EMR) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitabiliy, risk, earnings, valuation and institutional ownership.
Risk & Volatility
Kyocera Corporation has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Emerson Electric Company has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Valuation and Earnings
This table compares Kyocera Corporation and Emerson Electric Company’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kyocera Corporation||$12.79 billion||1.68||$1.64 billion||$2.62||22.24|
|Emerson Electric Company||$14.40 billion||2.72||$3.10 billion||$2.35||25.82|
Emerson Electric Company has higher revenue and earnings than Kyocera Corporation. Kyocera Corporation is trading at a lower price-to-earnings ratio than Emerson Electric Company, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.6% of Kyocera Corporation shares are owned by institutional investors. Comparatively, 69.9% of Emerson Electric Company shares are owned by institutional investors. 0.8% of Emerson Electric Company shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Kyocera Corporation pays an annual dividend of $0.39 per share and has a dividend yield of 0.7%. Emerson Electric Company pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. Kyocera Corporation pays out 14.9% of its earnings in the form of a dividend. Emerson Electric Company pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Emerson Electric Company has raised its dividend for 60 consecutive years. Emerson Electric Company is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and recommmendations for Kyocera Corporation and Emerson Electric Company, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerson Electric Company||2||15||1||0||1.94|
Emerson Electric Company has a consensus price target of $55.69, indicating a potential downside of 8.23%. Given Emerson Electric Company’s higher probable upside, analysts plainly believe Emerson Electric Company is more favorable than Kyocera Corporation.
This table compares Kyocera Corporation and Emerson Electric Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerson Electric Company||8.72%||23.37%||9.33%|
Emerson Electric Company beats Kyocera Corporation on 12 of the 16 factors compared between the two stocks.
Kyocera Corporation Company Profile
Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.
Emerson Electric Company Company Profile
Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.
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