Nikon (OTCMKTS:NINOY – Get Free Report) and Advanced Energy Industries (NASDAQ:AEIS – Get Free Report) are both mid-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation & Earnings
This table compares Nikon and Advanced Energy Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nikon | $4.50 billion | 0.77 | -$568.18 million | ($1.87) | -5.61 |
| Advanced Energy Industries | $1.80 billion | 4.74 | $148.40 million | $5.36 | 39.68 |
Advanced Energy Industries has lower revenue, but higher earnings than Nikon. Nikon is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.1% of Nikon shares are held by institutional investors. Comparatively, 99.7% of Advanced Energy Industries shares are held by institutional investors. 1.3% of Advanced Energy Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Nikon and Advanced Energy Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nikon | 0 | 1 | 0 | 0 | 2.00 |
| Advanced Energy Industries | 0 | 3 | 11 | 0 | 2.79 |
Advanced Energy Industries has a consensus target price of $377.75, suggesting a potential upside of 77.60%. Given Advanced Energy Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Advanced Energy Industries is more favorable than Nikon.
Profitability
This table compares Nikon and Advanced Energy Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nikon | -13.88% | -15.50% | -8.46% |
| Advanced Energy Industries | 12.72% | 25.79% | 12.66% |
Risk & Volatility
Nikon has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
Dividends
Nikon pays an annual dividend of $0.10 per share and has a dividend yield of 1.0%. Advanced Energy Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.2%. Nikon pays out -5.3% of its earnings in the form of a dividend. Advanced Energy Industries pays out 7.5% 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. Nikon is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Advanced Energy Industries beats Nikon on 13 of the 16 factors compared between the two stocks.
About Nikon
Nikon Corporation manufactures and sells optical instruments in Japan, North America, Europe, China, Thailand, and internationally. It operates through Imaging Products Business, Precision Equipment Business, Healthcare Business, Components Business, and Industrial equipment and Others segments. The Imaging Products Business segment provides digital SLR cameras, compact digital cameras, and interchangeable camera lenses. The Precision Equipment Business segment offers FPD lithography systems and semiconductor lithography systems. The Healthcare Business segment provides biological microscopes, cell culture observation systems, and ultra-wide field retinal imaging devices, as well as products and services related to the contract cell development and manufacturing field. The Components Business segment offers optical components, optical parts, encoders, and material processing products and services; EUV-related components and space-related solutions; and photomask substrates for FPDs. The Industrial equipment and Others segment provides industrial microscopes, non-contact 3D metrology systems, measuring instruments, X-ray/CT inspection systems, and surveying instruments. In addition, it sells used equipment; provides maintenance services for FPD/semiconductor lithography systems; sells and services cameras, microscopes, measuring instruments, and X-ray inspection equipment; and develops and supports computer software. Further, the company is involved in the procurement, logistics, and welfare activities; development, manufacturing, and testing services for eyeglass and lenses; and assembly of camera units. Nikon Corporation was incorporated in 1917 and is headquartered in Minato, Japan.
About Advanced Energy Industries
Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.
Receive News & Ratings for Nikon Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nikon and related companies with MarketBeat.com's FREE daily email newsletter.
