Surge Component (OTCMKTS:SPRS) and Yaskawa Electric (OTCMKTS:YASKY) Financial Comparison

Yaskawa Electric (OTCMKTS:YASKY) and Surge Component (OTCMKTS:SPRS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Yaskawa Electric and Surge Component, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yaskawa Electric	0	1	2	2	3.20
Surge Component	0	0	0	0	0.00

Risk and Volatility

Yaskawa Electric has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Surge Component has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares Yaskawa Electric and Surge Component’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yaskawa Electric	6.86%	8.18%	4.83%
Surge Component	3.13%	5.53%	4.30%

Valuation & Earnings

This table compares Yaskawa Electric and Surge Component”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yaskawa Electric	$3.53 billion	2.13	$376.12 million	$1.91	30.33
Surge Component	$36.32 million	0.58	$1.14 million	$0.20	18.00

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

Summary

Yaskawa Electric beats Surge Component on 12 of the 12 factors compared between the two stocks.

About Yaskawa Electric

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. The company was founded in 1915 and is headquartered in Kitakyushu, Japan.

About Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.