Murata Manufacturing (OTCMKTS:MRAAY) and Enersys (NYSE:ENS) Head-To-Head Analysis

Enersys (NYSE:ENS) and Murata Manufacturing (OTCMKTS:MRAAY) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Risk and Volatility

Enersys has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Murata Manufacturing has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enersys	9.60%	21.99%	10.24%
Murata Manufacturing	12.51%	8.51%	7.28%

Earnings and Valuation

This table compares Enersys and Murata Manufacturing”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enersys	$3.62 billion	1.19	$363.73 million	$8.76	13.08
Murata Manufacturing	$11.45 billion	3.13	$1.54 billion	$0.39	24.67

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

Insider & Institutional Ownership

94.9% of Enersys shares are held by institutional investors. Comparatively, 0.8% of Murata Manufacturing shares are held by institutional investors. 0.9% of Enersys shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Enersys pays an annual dividend of $1.05 per share and has a dividend yield of 0.9%. Murata Manufacturing pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Enersys pays out 12.0% of its earnings in the form of a dividend. Murata Manufacturing pays out 35.9% 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. Enersys has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Enersys and Murata Manufacturing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enersys	0	0	4	0	3.00
Murata Manufacturing	0	0	0	0	0.00

Enersys currently has a consensus price target of $118.33, indicating a potential upside of 3.28%. Given Enersys’ stronger consensus rating and higher probable upside, analysts plainly believe Enersys is more favorable than Murata Manufacturing.

Summary

Enersys beats Murata Manufacturing on 11 of the 17 factors compared between the two stocks.

About Enersys

EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.

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.