Comparing Murata Manufacturing (OTCMKTS:MRAAY) & Wartsila (OTCMKTS:WRTBY)

Murata Manufacturing (OTCMKTS:MRAAY) and Wartsila (OTCMKTS:WRTBY) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Earnings & Valuation

This table compares Murata Manufacturing and Wartsila”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murata Manufacturing	$11.45 billion	2.39	$1.54 billion	$0.41	17.95
Wartsila	$6.98 billion	2.51	$544.30 million	$0.20	29.60

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Murata Manufacturing and Wartsila, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murata Manufacturing	0	0	0	0	0.00
Wartsila	0	2	0	0	2.00

Insider & Institutional Ownership

0.8% of Murata Manufacturing shares are owned by institutional investors. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Murata Manufacturing	13.41%	9.06%	7.74%
Wartsila	8.19%	22.76%	7.28%

Dividends

Murata Manufacturing pays an annual dividend of $0.14 per share and has a dividend yield of 1.9%. Wartsila pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Murata Manufacturing pays out 34.1% of its earnings in the form of a dividend. Wartsila pays out 15.0% 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.

Volatility & Risk

Murata Manufacturing has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Wartsila has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Summary

Murata Manufacturing beats Wartsila on 7 of the 13 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 Wartsila

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers engine power plant products, such as gas, multi-fuel, and diesel engines; GEMS Digital Energy Platform, a smart software platform that monitors, controls, and optimizes energy assets on site and portfolio levels; GridSolv Quantum, a fully integrated energy storage solution, which enables ease of deployment and sustainable energy optimization; GEMS Power Plant Controllers; GEMS Fleet Director, which provides centralized real-time visibility into a global fleet of power plants; and GEMS Grid Controller that conducts intelligent grid control and optimized power management for microgrids of various sizes. The company also provides GEMS smart energy management software platform to remotely monitor, operate, identify, and diagnose assets; lifecycle solutions for power plants; power and propulsion products, such as electric shipping and hybrid ships, engine and generating sets, propulsors and gears, and shaft line solutions; liquid and gas handling products, including ballast water management, freshwater generation, waste and wastewater treatment, gas solutions, and exhaust treatment equipment; port and fleet optimization; simulation and training solutions; and automation, navigation, and control systems. The company was founded in 1834 and is headquartered in Helsinki, Finland.