Financial Review: Casio Computer (OTCMKTS:CSIOY) vs. Bel Fuse (NASDAQ:BELFB)

Bel Fuse (NASDAQ:BELFB) and Casio Computer (OTCMKTS:CSIOY) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Dividends

Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 0.1%. Casio Computer pays an annual dividend of $2.07 per share and has a dividend yield of 2.0%. Bel Fuse pays out 6.4% of its earnings in the form of a dividend. Casio Computer pays out 39.0% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Bel Fuse and Casio Computer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	1	0	8	0	2.78
Casio Computer	0	0	0	0	0.00

Bel Fuse currently has a consensus target price of $321.50, suggesting a potential upside of 12.44%. Given Bel Fuse’s stronger consensus rating and higher probable upside, analysts plainly believe Bel Fuse is more favorable than Casio Computer.

Earnings & Valuation

This table compares Bel Fuse and Casio Computer”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$675.46 million	5.38	$61.54 million	$4.39	65.13
Casio Computer	$1.84 billion	1.34	$120.30 million	$5.31	19.79

Casio Computer has higher revenue and earnings than Bel Fuse. Casio Computer is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

58.4% of Bel Fuse shares are owned by institutional investors. 5.4% of Bel Fuse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Bel Fuse has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Casio Computer has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Bel Fuse and Casio Computer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.84%	12.97%	5.81%
Casio Computer	6.59%	7.69%	5.14%

Summary

Bel Fuse beats Casio Computer on 12 of the 16 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.