Contrasting Murata Manufacturing (OTCMKTS:MRAAY) and Kimball Electronics (NASDAQ:KE)

Murata Manufacturing (OTCMKTS:MRAAY) and Kimball Electronics (NASDAQ:KE) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Murata Manufacturing and Kimball Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murata Manufacturing	13.86%	9.84%	8.39%
Kimball Electronics	1.95%	4.41%	2.35%

Volatility & Risk

Murata Manufacturing has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Murata Manufacturing and Kimball Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murata Manufacturing	0	1	1	1	3.00
Kimball Electronics	0	3	2	0	2.40

Kimball Electronics has a consensus price target of $32.00, indicating a potential upside of 20.85%. Given Kimball Electronics’ higher possible upside, analysts plainly believe Kimball Electronics is more favorable than Murata Manufacturing.

Institutional & Insider Ownership

0.8% of Murata Manufacturing shares are owned by institutional investors. Comparatively, 76.0% of Kimball Electronics shares are owned by institutional investors. 3.5% of Kimball Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Murata Manufacturing and Kimball Electronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murata Manufacturing	$12.16 billion	6.46	$1.54 billion	$0.47	45.70
Kimball Electronics	$1.43 billion	0.44	$27.96 million	$1.13	23.43

Murata Manufacturing has higher revenue and earnings than Kimball Electronics. Kimball Electronics is trading at a lower price-to-earnings ratio than Murata Manufacturing, indicating that it is currently the more affordable of the two stocks.

Summary

Murata Manufacturing beats Kimball Electronics on 10 of the 15 factors compared between the two stocks.

About Murata Manufacturing

Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. The company offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID product, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also offers Femtet, a CAE software that solves various engineering challenges; and provides silver oxide battery. In addition, the company provides connectivity, Wifi sensing, IOT, AI, and RFID solutions. Murata Manufacturing Co., Ltd. offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare, medical, personal electronics applications, and other sectors. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.