Comparing Murata Manufacturing (MRAAY) and Its Peers

Murata Manufacturing (OTCMKTS:MRAAY) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its peers? We will compare Murata Manufacturing to similar companies based on the strength of its valuation, earnings, risk, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Murata Manufacturing and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murata Manufacturing	0	1	1	1	3.00
Murata Manufacturing Competitors	2047	7597	10416	658	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 31.98%. Given Murata Manufacturing’s peers higher possible upside, analysts plainly believe Murata Manufacturing has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Murata Manufacturing and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Murata Manufacturing	$12.16 billion	$1.54 billion	39.42
Murata Manufacturing Competitors	$4.00 billion	$172.92 million	6.13

Murata Manufacturing has higher revenue and earnings than its peers. Murata Manufacturing is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Murata Manufacturing pays an annual dividend of $0.13 per share and has a dividend yield of 0.7%. Murata Manufacturing pays out 26.0% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 70.2% of their earnings in the form of a dividend.

Volatility and Risk

Murata Manufacturing has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Murata Manufacturing’s peers have a beta of -0.25, suggesting that their average stock price is 125% less volatile than the S&P 500.

Institutional and Insider Ownership

0.8% of Murata Manufacturing shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 16.2% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Murata Manufacturing and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murata Manufacturing	14.19%	10.44%	8.88%
Murata Manufacturing Competitors	-158.14%	-25.87%	-6.85%

Summary

Murata Manufacturing beats its peers on 10 of the 15 factors compared.

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.