Critical Contrast: Bel Fuse (NASDAQ:BELFA) & Tokyo Electron (OTCMKTS:TOELY)

Tokyo Electron (OTCMKTS:TOELY) and Bel Fuse (NASDAQ:BELFA) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tokyo Electron and Bel Fuse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
Bel Fuse	0	1	0	0	2.00

Bel Fuse has a consensus target price of $250.00, indicating a potential downside of 10.35%. Given Bel Fuse’s higher possible upside, analysts clearly believe Bel Fuse is more favorable than Tokyo Electron.

Dividends

Tokyo Electron pays an annual dividend of $1.67 per share and has a dividend yield of 0.7%. Bel Fuse pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Tokyo Electron pays out 40.4% of its earnings in the form of a dividend. Bel Fuse pays out 5.8% 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. Bel Fuse has raised its dividend for 1 consecutive years.

Risk and Volatility

Tokyo Electron has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	23.40%	22.98%	17.30%
Bel Fuse	7.84%	22.38%	10.02%

Insider & Institutional Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Comparatively, 6.0% of Bel Fuse shares are owned by institutional investors. 4.8% of Bel Fuse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$16.23 billion	13.91	$3.82 billion	$4.13	58.42
Bel Fuse	$675.46 million	5.25	$61.54 million	$4.15	67.20

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

Summary

Tokyo Electron beats Bel Fuse on 10 of the 17 factors compared between the two stocks.

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.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.