Critical Analysis: Kyocera Corporation (KYO) and General Cable Corporation (BGC)
Kyocera Corporation (NYSE: KYO) and General Cable Corporation (NYSE:BGC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Kyocera Corporation pays an annual dividend of $0.86 per share and has a dividend yield of 1.4%. General Cable Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. Kyocera Corporation pays out 28.3% of its earnings in the form of a dividend. General Cable Corporation pays out -20.2% 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. General Cable Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent recommendations and price targets for Kyocera Corporation and General Cable Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|General Cable Corporation||0||2||0||0||2.00|
This table compares Kyocera Corporation and General Cable Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|General Cable Corporation||-4.80%||13.47%||1.10%|
Institutional and Insider Ownership
0.5% of Kyocera Corporation shares are held by institutional investors. Comparatively, 98.1% of General Cable Corporation shares are held by institutional investors. 1.8% of General Cable Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Kyocera Corporation and General Cable Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kyocera Corporation||$13.31 billion||1.79||$1.87 billion||$3.04||20.81|
|General Cable Corporation||$3.70 billion||0.25||$209.90 million||($3.57)||-5.27|
Kyocera Corporation has higher revenue and earnings than General Cable Corporation. General Cable Corporation is trading at a lower price-to-earnings ratio than Kyocera Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Kyocera Corporation has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, General Cable Corporation has a beta of 2.84, suggesting that its stock price is 184% more volatile than the S&P 500.
Kyocera Corporation beats General Cable Corporation on 8 of the 15 factors compared between the two stocks.
About Kyocera Corporation
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.
About General Cable Corporation
General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.
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