Critical Analysis: Murata Manufacturing (MRAAY) vs. Its Rivals

Murata Manufacturing (OTCMKTS:MRAAY) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its competitors? We will compare Murata Manufacturing to related companies based on the strength of its analyst recommendations, dividends, profitability, institutional ownership, valuation, risk and earnings.

Dividends

Murata Manufacturing pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. Murata Manufacturing pays out 26.0% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 2.0% and pay out 69.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Murata Manufacturing and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murata Manufacturing	0	1	1	1	3.00
Murata Manufacturing Competitors	2049	7610	10439	662	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 42.23%. Given Murata Manufacturing’s competitors higher possible upside, analysts plainly believe Murata Manufacturing has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

0.8% of Murata Manufacturing shares are held by institutional investors. Comparatively, 43.3% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Murata Manufacturing has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Murata Manufacturing’s competitors have a beta of -0.30, indicating that their average stock price is 130% less volatile than the S&P 500.

Profitability

This table compares Murata Manufacturing and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murata Manufacturing	14.19%	10.44%	8.88%
Murata Manufacturing Competitors	-160.23%	-30.21%	-6.88%

Earnings and Valuation

This table compares Murata Manufacturing and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Murata Manufacturing	$12.16 billion	$1.54 billion	28.24
Murata Manufacturing Competitors	$115.46 billion	$173.80 million	3.07

Murata Manufacturing’s competitors have higher revenue, but lower earnings than Murata Manufacturing. Murata Manufacturing is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Murata Manufacturing beats its competitors on 9 of the 15 factors compared.

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.