Toshiba (OTCMKTS:TOSYY) and NEC (OTCMKTS:NIPNF) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Toshiba and NEC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Toshiba 27.70% 0.76% 0.32%
NEC 1.26% 3.50% 1.33%

Institutional & Insider Ownership

0.1% of Toshiba shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Toshiba pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. NEC does not pay a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Toshiba and NEC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toshiba 0 0 0 0 N/A
NEC 0 0 0 0 N/A

Earnings & Valuation

This table compares Toshiba and NEC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Toshiba $33.28 billion 0.59 $9.13 billion N/A N/A
NEC $25.69 billion 0.30 $412.83 million N/A N/A

Toshiba has higher revenue and earnings than NEC.

Summary

Toshiba beats NEC on 6 of the 8 factors compared between the two stocks.

About Toshiba

Toshiba Corporation, together with its subsidiaries, manufactures and markets electronic and electrical products and systems worldwide. It operates through six segments: Energy Systems & Solutions, Infrastructure Systems & Solutions, Retail & Printing Solutions, Storage & Electronic Devices Solutions, Industrial ICT Solutions, and Others. The company offers infrastructure systems, including power, transmission and distribution, industrial, railway transportation, security and automation, broadcasting and network, water and environmental, building, and POS systems; airport facilities and solid-state weather radars; elevators and escalators; and printing and IT solutions. It also provides electronic devices and components, such as semiconductors, storage products, microwave semiconductors and components, materials and devices, and display devices and components; and digital products comprising computers and tablets, memory products, SSDs, televisions, Blu-ray products, and home appliances. In addition, the company offers nuclear power generation systems, thermal power generation systems, light fixtures, air-conditioners, building and facility solutions, multi-function peripherals, hard disk drives, cloud solutions, visual products, etc. Toshiba Corporation was founded in 1875 and is headquartered in Tokyo, Japan.

About NEC

NEC Corporation engages in the integration of information technology (IT) and network technologies worldwide. It operates in four segments: Public, Enterprise, Telecom Carrier, and System Platform. The company provides systems integration services, such as systems implementation and consulting; maintenance and support services; outsourcing/cloud services; and system equipment. It also provides network infrastructure products, including core network products, mobile phone base stations, submarine systems comprising submarine cable and ocean observation systems, optical transmission systems, routers/switches, and mobile backhaul products, as well as telecom operations and management solutions, and other services/solutions. In addition, the company provides hardware products, such as servers, mainframes, supercomputers, storage products, business PCs, tablet devices, POS, ATMs, control equipment, wireless LAN routers, displays, and projectors; and software products that consist of integrated operation management, application servers, and security and database software. Further, it offers enterprise network solutions that include IP telephony systems, WAN/wireless access equipment, and LAN products; data center infrastructure services; and safety products, which include biometric solutions comprising face recognition and fingerprint identification, surveillance products, Smart energy products, and lighting equipment. Additionally, the company engages in the provision of IT services for retail sector; and manufacturing co-creation program activities. It primarily serves governments, governmental agencies, local governments, public institutions, financial institutions, and other organizations, as well as telecom carriers. The company was formerly known as Nippon Electric Company, Limited and changed its name to NEC Corporation in April 1983. NEC Corporation was founded in 1899 and is headquartered in Tokyo, Japan.

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