Head to Head Survey: Nidec (OTCMKTS:NJDCY) and AUO (OTCMKTS:AUOTY)

Nidec (OTCMKTS:NJDCY) and AUO (OTCMKTS:AUOTY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Risk & Volatility

Nidec has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Profitability

This table compares Nidec and AUO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nidec	6.06%	9.18%	4.79%
AUO	N/A	N/A	N/A

Earnings & Valuation

This table compares Nidec and AUO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nidec	$17.12 billion	2.21	$1.11 billion	$0.23	17.26
AUO	$8.03 billion	0.44	-$584.71 million	($0.26)	-17.69

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

Analyst Ratings

This is a summary of current ratings and price targets for Nidec and AUO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nidec	0	1	0	0	2.00
AUO	0	0	0	0	0.00

Insider & Institutional Ownership

0.2% of Nidec shares are owned by institutional investors. 16.0% of AUO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Nidec beats AUO on 11 of the 12 factors compared between the two stocks.

About Nidec

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.