Murata Manufacturing (OTCMKTS:MRAAY – Get Free Report) and Amphenol (NYSE:APH – Get Free Report) are both large-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Valuation & Earnings
This table compares Murata Manufacturing and Amphenol”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Murata Manufacturing | $12.16 billion | 7.49 | $1.54 billion | $0.47 | 52.98 |
| Amphenol | $23.09 billion | 9.01 | $4.27 billion | $2.00 | 42.21 |
Insider & Institutional Ownership
0.8% of Murata Manufacturing shares are held by institutional investors. Comparatively, 97.0% of Amphenol shares are held by institutional investors. 1.4% of Amphenol shares 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.
Dividends
Murata Manufacturing pays an annual dividend of $0.13 per share and has a dividend yield of 0.5%. Amphenol pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Murata Manufacturing pays out 27.7% of its earnings in the form of a dividend. Amphenol pays out 25.0% 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. Amphenol is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Murata Manufacturing has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Amphenol has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Murata Manufacturing and Amphenol, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Murata Manufacturing | 0 | 1 | 1 | 1 | 3.00 |
| Amphenol | 0 | 2 | 16 | 0 | 2.89 |
Amphenol has a consensus price target of $96.85, indicating a potential upside of 14.73%. Given Amphenol’s higher probable upside, analysts clearly believe Amphenol is more favorable than Murata Manufacturing.
Profitability
This table compares Murata Manufacturing and Amphenol’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Murata Manufacturing | 13.86% | 9.84% | 8.39% |
| Amphenol | 17.73% | 39.87% | 14.80% |
Summary
Amphenol beats Murata Manufacturing on 13 of the 17 factors compared between the two stocks.
About Murata Manufacturing
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.
About Amphenol
Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.
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