Head-To-Head Survey: Alps Electric (OTCMKTS:APELY) versus nVent Electric (NYSE:NVT)

Alps Electric (OTCMKTS:APELY) and nVent Electric (NYSE:NVT) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Alps Electric and nVent Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	2.62%	7.42%	4.18%
nVent Electric	11.37%	16.82%	9.03%

Analyst Ratings

This is a summary of current recommendations and price targets for Alps Electric and nVent Electric, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	0	1	0	0	2.00
nVent Electric	0	1	12	2	3.07

nVent Electric has a consensus price target of $189.50, suggesting a potential upside of 23.86%. Given nVent Electric’s stronger consensus rating and higher probable upside, analysts clearly believe nVent Electric is more favorable than Alps Electric.

Insider & Institutional Ownership

0.1% of Alps Electric shares are held by institutional investors. Comparatively, 90.0% of nVent Electric shares are held by institutional investors. 10.4% of Alps Electric shares are held by company insiders. Comparatively, 1.7% of nVent Electric shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Alps Electric has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Alps Electric and nVent Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.77 billion	0.37	$178.56 million	$1.78	13.43
nVent Electric	$3.89 billion	6.36	$710.20 million	$3.01	50.83

nVent Electric has lower revenue, but higher earnings than Alps Electric. Alps Electric is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.

Dividends

Alps Electric pays an annual dividend of $0.46 per share and has a dividend yield of 1.9%. nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Alps Electric pays out 25.8% of its earnings in the form of a dividend. nVent Electric pays out 27.9% 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. nVent Electric has raised its dividend for 2 consecutive years. Alps Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

nVent Electric beats Alps Electric on 14 of the 18 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.