Critical Analysis: Murata Manufacturing (MRAAY) and Its Peers

Dividends

Murata Manufacturing pays an annual dividend of $0.14 per share and has a dividend yield of 2.0%. Murata Manufacturing pays out 34.1% of its earnings in the form of a dividend. As a group, “MACH – ELECTRICAL” companies pay a dividend yield of 1.0% and pay out 23.4% of their earnings in the form of a dividend.

Institutional & Insider Ownership

0.8% of Murata Manufacturing shares are held by institutional investors. Comparatively, 59.8% of shares of all “MACH – ELECTRICAL” companies are held by institutional investors. 3.7% of shares of all “MACH – ELECTRICAL” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Murata Manufacturing and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murata Manufacturing	13.41%	9.07%	7.76%
Murata Manufacturing Competitors	-3,597.93%	-24.73%	-12.19%

Volatility and Risk

Murata Manufacturing has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Murata Manufacturing’s rivals have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares Murata Manufacturing and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Murata Manufacturing	$11.45 billion	$1.54 billion	17.07
Murata Manufacturing Competitors	$7.71 billion	$701.94 million	18.25

Murata Manufacturing has higher revenue and earnings than its rivals. Murata Manufacturing is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Murata Manufacturing beats its rivals on 6 of the 11 factors compared.

Murata Manufacturing Company Profile

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.