Critical Analysis: Tokyo Electron (OTCMKTS:TOELY) & Casio Computer (OTCMKTS:CSIOY)

Casio Computer (OTCMKTS:CSIOY) and Tokyo Electron (OTCMKTS:TOELY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Casio Computer and Tokyo Electron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Casio Computer	6.99%	6.32%	4.22%
Tokyo Electron	21.07%	23.86%	17.69%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Casio Computer and Tokyo Electron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casio Computer	0	0	0	0	0.00
Tokyo Electron	0	1	0	0	2.00

Dividends

Casio Computer pays an annual dividend of $2.19 per share and has a dividend yield of 2.0%. Tokyo Electron pays an annual dividend of $1.21 per share and has a dividend yield of 0.8%. Casio Computer pays out 39.0% of its earnings in the form of a dividend. Tokyo Electron pays out 33.1% 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.

Valuation & Earnings

This table compares Casio Computer and Tokyo Electron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casio Computer	$1.72 billion	1.43	$53.22 million	$5.61	19.25
Tokyo Electron	$15.97 billion	8.61	$3.59 billion	$3.66	39.82

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

Insider and Institutional Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Casio Computer has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Summary

Tokyo Electron beats Casio Computer on 11 of the 13 factors compared between the two stocks.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.