Head-To-Head Contrast: Crane NXT (NYSE:CXT) vs. Tokyo Electron (OTCMKTS:TOELY)

Tokyo Electron (OTCMKTS:TOELY) and Crane NXT (NYSE:CXT) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Comparatively, 77.5% of Crane NXT shares are owned by institutional investors. 0.8% of Crane NXT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Tokyo Electron pays an annual dividend of $1.67 per share and has a dividend yield of 1.0%. Crane NXT pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Tokyo Electron pays out 38.2% of its earnings in the form of a dividend. Crane NXT pays out 29.8% 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. Crane NXT has increased its dividend for 2 consecutive years. Crane NXT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Tokyo Electron has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, Crane NXT has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Tokyo Electron and Crane NXT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	1	0	0	2.00
Crane NXT	0	2	4	1	2.86

Crane NXT has a consensus target price of $68.20, suggesting a potential upside of 35.08%. Given Crane NXT’s stronger consensus rating and higher probable upside, analysts plainly believe Crane NXT is more favorable than Tokyo Electron.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	23.58%	24.38%	18.03%
Crane NXT	7.78%	19.87%	7.43%

Valuation and Earnings

This table compares Tokyo Electron and Crane NXT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$16.23 billion	9.29	$3.79 billion	$4.37	36.86
Crane NXT	$1.66 billion	1.75	$145.10 million	$2.42	20.86

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

Crane NXT, Co. operates as an industrial technology company that provides technology solutions to secure, detect, and authenticate customers’ important assets. The company operates through Crane Payment Innovations and Crane Currency segments. The Crane Payment Innovations segment offers electronic equipment and associated software, as well as advanced automation solutions, processing systems, field service solutions, remote diagnostics, and productivity software solutions. The Crane Currency segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, and industrial products. Crane NXT, Co. was incorporated in 2021 and is based in Waltham, Massachusetts.