Comparing TDK (OTCMKTS:TTDKY) & Alps Electric (OTCMKTS:APELY)

Alps Electric (OTCMKTS:APELY) and TDK (OTCMKTS:TTDKY) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Insider and Institutional Ownership

0.1% of Alps Electric shares are held by institutional investors. 10.4% of Alps Electric shares are held by company insiders. Comparatively, 0.0% of TDK shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Alps Electric pays an annual dividend of $0.47 per share and has a dividend yield of 1.8%. TDK pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Alps Electric pays out 14.6% of its earnings in the form of a dividend. TDK pays out 19.7% 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. Alps Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Alps Electric and TDK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	4.91%	5.41%	3.03%
TDK	7.55%	9.32%	4.65%

Volatility and Risk

Alps Electric has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, TDK has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alps Electric and TDK”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.50 billion	0.41	$249.72 million	$3.23	7.97
TDK	$14.48 billion	1.92	$1.10 billion	$0.61	23.41

TDK has higher revenue and earnings than Alps Electric. Alps Electric is trading at a lower price-to-earnings ratio than TDK, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Alps Electric and TDK, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	1	1	0	0	1.50
TDK	0	0	0	0	0.00

Summary

TDK beats Alps Electric on 8 of the 14 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.