Reviewing Bel Fuse (NASDAQ:BELFB) and Daikin Industries (OTCMKTS:DKILY)

Bel Fuse (NASDAQ:BELFB) and Daikin Industries (OTCMKTS:DKILY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bel Fuse and Daikin Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	1	5	0	2.83
Daikin Industries	0	0	0	0	0.00

Bel Fuse presently has a consensus target price of $307.25, suggesting a potential upside of 3.11%. Given Bel Fuse’s stronger consensus rating and higher probable upside, analysts clearly believe Bel Fuse is more favorable than Daikin Industries.

Dividends

Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 0.1%. Daikin Industries pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Bel Fuse pays out 6.4% of its earnings in the form of a dividend. Daikin Industries pays out 22.6% 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.

Insider & Institutional Ownership

58.4% of Bel Fuse shares are held by institutional investors. 5.4% of Bel Fuse shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Bel Fuse and Daikin Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.84%	12.97%	5.81%
Daikin Industries	5.69%	9.00%	5.07%

Earnings & Valuation

This table compares Bel Fuse and Daikin Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$701.71 million	5.37	$61.54 million	$4.39	67.88
Daikin Industries	$31.21 billion	1.47	$1.75 billion	$0.62	25.31

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

Volatility and Risk

Bel Fuse has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Daikin Industries has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Summary

Bel Fuse beats Daikin Industries on 13 of the 16 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About Daikin Industries

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.