Reviewing Taiyo Yuden (OTCMKTS:TYOYY) and Makita (OTCMKTS:MKTAY)

Makita (OTCMKTS:MKTAY) and Taiyo Yuden (OTCMKTS:TYOYY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Makita	10.40%	8.21%	6.95%
Taiyo Yuden	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Makita and Taiyo Yuden, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Makita	1	0	0	0	1.00
Taiyo Yuden	1	1	0	0	1.50

Dividends

Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.5%. Taiyo Yuden pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Makita pays out 57.6% of its earnings in the form of a dividend. Taiyo Yuden pays out 0.1% 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.

Earnings & Valuation

This table compares Makita and Taiyo Yuden”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Makita	$5.17 billion	1.71	$527.55 million	$2.05	16.30
Taiyo Yuden	N/A	N/A	N/A	$117.37	0.15

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

Summary

Makita beats Taiyo Yuden on 6 of the 9 factors compared between the two stocks.

About Makita

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.

About Taiyo Yuden

Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components in Japan, China, Hong Kong, and internationally. It offers multilayer ceramic capacitors, inductors, RF devices, power storage devices, piezoelectric actuators, smell sensor, and reliability products for automotives and industrial equipment, as well as conductive polymer hybrid aluminum electrolytic capacitors. Taiyo Yuden Co., Ltd. was incorporated in 1950 and is headquartered in Tokyo, Japan.