Head-To-Head Review: Nidec (OTCMKTS:NJDCY) versus Advanced Energy Industries (NASDAQ:AEIS)

Nidec (OTCMKTS:NJDCY) and Advanced Energy Industries (NASDAQ:AEIS) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Nidec and Advanced Energy Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nidec	$17.99 billion	1.38	-$3.75 billion	($0.70)	-3.71
Advanced Energy Industries	$2.04 billion	4.68	$148.40 million	$5.36	44.41

Advanced Energy Industries has lower revenue, but higher earnings than Nidec. Nidec is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.2% of Nidec shares are held by institutional investors. Comparatively, 99.7% of Advanced Energy Industries shares are held by institutional investors. 1.3% of Advanced Energy Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Nidec has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares Nidec and Advanced Energy Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nidec	-17.80%	-29.23%	-13.40%
Advanced Energy Industries	10.77%	20.75%	10.39%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nidec and Advanced Energy Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nidec	0	2	0	0	2.00
Advanced Energy Industries	0	2	11	1	2.93

Advanced Energy Industries has a consensus target price of $409.50, indicating a potential upside of 72.02%. Given Advanced Energy Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Advanced Energy Industries is more favorable than Nidec.

Summary

Advanced Energy Industries beats Nidec on 13 of the 15 factors compared between the two stocks.

About Nidec

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..

About Advanced Energy Industries

Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.