Denso (OTCMKTS:DNZOY – Get Free Report) and Aisin Seiki (OTCMKTS:ASEKY – Get Free Report) are both large-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares Denso and Aisin Seiki”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Denso | $50.09 billion | 0.68 | $2.95 billion | $1.07 | 10.86 |
| Aisin Seiki | $34.00 billion | 0.30 | $1.14 billion | $1.53 | 8.89 |
Profitability
This table compares Denso and Aisin Seiki’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Denso | 5.82% | 8.29% | 5.23% |
| Aisin Seiki | 3.34% | 7.29% | 3.93% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Denso and Aisin Seiki, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Denso | 0 | 4 | 0 | 0 | 2.00 |
| Aisin Seiki | 0 | 1 | 0 | 1 | 3.00 |
Volatility and Risk
Denso has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Aisin Seiki has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Dividends
Denso pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Aisin Seiki pays an annual dividend of $0.11 per share and has a dividend yield of 0.8%. Denso pays out 11.2% of its earnings in the form of a dividend. Aisin Seiki pays out 7.2% 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.
Summary
Denso beats Aisin Seiki on 9 of the 13 factors compared between the two stocks.
About Denso
DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.
About Aisin Seiki
Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENEĀ·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.
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