Murata Manufacturing (OTCMKTS:MRAAY) and Eaton (NYSE:ETN) Head to Head Analysis

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

Valuation & Earnings

This table compares Murata Manufacturing and Eaton”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murata Manufacturing	$11.45 billion	3.26	$1.54 billion	$0.43	23.77
Eaton	$24.88 billion	5.03	$3.79 billion	$10.00	32.21

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

Institutional and Insider Ownership

0.8% of Murata Manufacturing shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 0.3% of Eaton shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Murata Manufacturing and Eaton, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murata Manufacturing	0	0	0	0	0.00
Eaton	0	6	17	1	2.79

Eaton has a consensus target price of $394.62, indicating a potential upside of 22.51%. Given Eaton’s stronger consensus rating and higher possible upside, analysts clearly believe Eaton is more favorable than Murata Manufacturing.

Dividends

Murata Manufacturing pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Eaton pays an annual dividend of $4.16 per share and has a dividend yield of 1.3%. Murata Manufacturing pays out 25.6% of its earnings in the form of a dividend. Eaton pays out 41.6% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Murata Manufacturing	13.40%	9.16%	7.84%
Eaton	14.74%	24.36%	11.45%

Risk & Volatility

Murata Manufacturing has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Eaton has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Eaton beats Murata Manufacturing on 16 of the 17 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 Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.