Head-To-Head Analysis: Hexagon (OTCMKTS:HXGBY) and Kyocera (OTCMKTS:KYOCY)

Kyocera (OTCMKTS:KYOCY) and Hexagon (OTCMKTS:HXGBY) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Profitability

This table compares Kyocera and Hexagon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyocera	6.78%	4.17%	3.04%
Hexagon	11.66%	10.21%	6.22%

Analyst Ratings

This is a breakdown of current ratings and price targets for Kyocera and Hexagon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyocera	0	1	0	0	2.00
Hexagon	1	2	1	0	2.00

Valuation and Earnings

This table compares Kyocera and Hexagon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyocera	$13.75 billion	2.41	$936.46 million	$0.67	36.70
Hexagon	$6.14 billion	4.41	$698.53 million	$0.24	42.00

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

Insider and Institutional Ownership

7.4% of Kyocera shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Kyocera has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Hexagon has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Dividends

Kyocera pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Hexagon pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Kyocera pays out 17.9% of its earnings in the form of a dividend. Hexagon pays out 33.3% 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.

Summary

Hexagon beats Kyocera on 8 of the 13 factors compared between the two stocks.

About Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.

About Hexagon

Hexagon AB (publ) provides geospatial and industrial enterprise solutions worldwide. The company offers analysis and management, machine control, embedded electronics, monitoring, and planning and optimization solutions to agriculture division; 3D design and visualization, enterprise asset and asset lifecycle management, OT/ICS cyber security, engineering and schematics, enterprise project performance, operation and maintenance, procurement, fabrication, and construction services for asset lifecycle intelligence division; GNSS and SMART antennas, anti-jam systems, autonomy kits and services, correction services, GNSS/INS receivers and post processing, resilience and integrity technology, and visualization software for autonomy and positioning division; and 3D surveillance, AEC and survey software, geospatial content, machine control, digital realities platform, laser scanning and measurement tools, levels, total stations, airborne, monitoring, document and verification solutions, detection, GNSS, and mobile mapping system to geosystem division. It also provides CAD CAM and CAE software, CNC simulation and computed tomography software, measurement and inspection hardware and software, manufacturing project management, digital transformation for manufacturing, environmental health and safety, and quality management systems to manufacturing intelligence division; and HxGN mine protect, operate, monitoring, measure, and plan services, as well as HxGN autonomous and underground mining services to mining division. In addition, the company offers GIS, imagery analysis and data management, collaboration, government, transportation, and defense solutions; and utility GIS and outage management services, and public safety and geospatial platform to safety, infrastructure, and geospatial division. The company was incorporated in 1975 and is based in Stockholm, Sweden.