Murata Manufacturing (OTCMKTS:MRAAY) vs. Kimball Electronics (NASDAQ:KE) Head-To-Head Analysis

Kimball Electronics (NASDAQ:KE) and Murata Manufacturing (OTCMKTS:MRAAY) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Profitability

This table compares Kimball Electronics and Murata Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimball Electronics	1.95%	4.41%	2.35%
Murata Manufacturing	13.86%	9.84%	8.39%

Analyst Ratings

This is a breakdown of current ratings for Kimball Electronics and Murata Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimball Electronics	0	3	2	0	2.40
Murata Manufacturing	0	1	1	1	3.00

Kimball Electronics currently has a consensus target price of $32.00, indicating a potential upside of 20.85%. Given Kimball Electronics’ higher probable upside, equities analysts plainly believe Kimball Electronics is more favorable than Murata Manufacturing.

Insider & Institutional Ownership

76.0% of Kimball Electronics shares are held by institutional investors. Comparatively, 0.8% of Murata Manufacturing shares are held by institutional investors. 3.5% of Kimball Electronics shares are held by insiders. 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.

Risk and Volatility

Kimball Electronics has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Murata Manufacturing has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kimball Electronics and Murata Manufacturing”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimball Electronics	$1.43 billion	0.44	$27.96 million	$1.13	23.43
Murata Manufacturing	$12.16 billion	6.46	$1.54 billion	$0.47	45.70

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

Summary

Murata Manufacturing beats Kimball Electronics on 10 of the 15 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

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.