Kyocera (OTCMKTS:KYOCY – Get Free Report) and Methode Electronics (NYSE:MEI – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.
Profitability
This table compares Kyocera and Methode Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kyocera | 6.78% | 4.17% | 3.04% |
| Methode Electronics | -3.52% | -5.63% | -2.94% |
Valuation & Earnings
This table compares Kyocera and Methode Electronics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kyocera | $13.75 billion | 2.41 | $936.46 million | $0.67 | 36.70 |
| Methode Electronics | $1.02 billion | 0.47 | -$35.70 million | ($1.04) | -12.80 |
Kyocera has higher revenue and earnings than Methode Electronics. Methode Electronics is trading at a lower price-to-earnings ratio than Kyocera, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Kyocera has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Methode Electronics has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Kyocera and Methode Electronics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kyocera | 0 | 1 | 0 | 0 | 2.00 |
| Methode Electronics | 1 | 3 | 2 | 0 | 2.17 |
Methode Electronics has a consensus price target of $22.00, indicating a potential upside of 65.21%. Given Methode Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Methode Electronics is more favorable than Kyocera.
Insider & Institutional Ownership
7.4% of Kyocera shares are owned by institutional investors. Comparatively, 95.5% of Methode Electronics shares are owned by institutional investors. 1.9% of Methode Electronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Kyocera pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Methode Electronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Kyocera pays out 17.9% of its earnings in the form of a dividend. Methode Electronics pays out -19.2% 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. Methode Electronics is clearly the better dividend stock, given its higher yield and lower payout ratio.
About Kyocera
Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.
About Methode Electronics
Methode Electronics, Inc. designs, engineers, and produces mechatronic products worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers. Its products include integrated center consoles, hidden and ergonomic switches, transmission lead-frames, complex insert molded solutions, LED-based lighting solutions, and sensors, which incorporate magneto-elastic sensing, eddy current, or other sensing technologies that monitor the operation or status of a component or system. The Industrial segment manufactures external lighting solutions comprising driving, work, and signal lights; industrial safety radio remote controls; braided flexible cables; current-carrying laminated and powder-coated busbars; high-voltage high current connector and contracts; custom power-product assemblies, such as PowerRail solution; and high-current low-voltage flexible power cabling systems that are used in aerospace, cloud computing, commercial vehicles, construction equipment, industrial, military, power conversion, and transportation markets and applications. The Interface segment provides various copper-based transceivers and related accessories for the cloud computing hardware equipment and telecommunications broadband equipment markets; user interface solutions for the appliance, commercial food service, and point-of-sale equipment markets; and fluid-level sensors for the marine/recreational vehicle and sump pump markets. The Medical segment offers Dabir Surfaces, a surface support technology aimed at pressure injury prevention for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. Methode Electronics, Inc. was incorporated in 1946 and is headquartered in Chicago, Illinois.
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