Murata Manufacturing (OTCMKTS:MRAAY – Get Free Report) and Ideal Power (NASDAQ:IPWR – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
0.8% of Murata Manufacturing shares are owned by institutional investors. Comparatively, 16.4% of Ideal Power shares are owned by institutional investors. 5.4% of Ideal Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Murata Manufacturing has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Ideal Power has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Murata Manufacturing | 0 | 0 | 0 | 0 | 0.00 |
| Ideal Power | 1 | 0 | 1 | 0 | 2.00 |
Ideal Power has a consensus target price of $10.75, suggesting a potential upside of 155.95%. Given Ideal Power’s stronger consensus rating and higher probable upside, analysts plainly believe Ideal Power is more favorable than Murata Manufacturing.
Valuation and Earnings
This table compares Murata Manufacturing and Ideal Power”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Murata Manufacturing | $11.45 billion | 3.47 | $1.54 billion | $0.43 | 24.84 |
| Ideal Power | $90,000.00 | 397.13 | -$10.42 million | ($1.24) | -3.39 |
Murata Manufacturing has higher revenue and earnings than Ideal Power. Ideal Power is trading at a lower price-to-earnings ratio than Murata Manufacturing, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Murata Manufacturing and Ideal Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Murata Manufacturing | 13.40% | 9.16% | 7.84% |
| Ideal Power | -26,225.58% | -80.27% | -69.83% |
Summary
Murata Manufacturing beats Ideal Power on 8 of the 14 factors compared between the two stocks.
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.
About Ideal Power
Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.
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