Head to Head Comparison: TDK (OTCMKTS:TTDKY) and Cemtrex (NASDAQ:CETX)

TDK (OTCMKTS:TTDKY) and Cemtrex (NASDAQ:CETX) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Dividends

TDK pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Cemtrex pays an annual dividend of $0.02 per share and has a dividend yield of 1.6%. TDK pays out 18.2% of its earnings in the form of a dividend. Cemtrex pays out 0.0% 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. Cemtrex is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

2.0% of Cemtrex shares are held by institutional investors. 0.0% of TDK shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for TDK and Cemtrex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	0	0	1	4.00
Cemtrex	1	0	0	0	1.00

Volatility and Risk

TDK has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Cemtrex has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares TDK and Cemtrex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TDK	7.85%	9.83%	4.86%
Cemtrex	-25.25%	-127.57%	-30.65%

Earnings & Valuation

This table compares TDK and Cemtrex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TDK	$14.48 billion	1.77	$1.10 billion	$0.66	19.94
Cemtrex	$78.88 million	0.16	-$28.11 million	$61.65	0.02

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

Summary

TDK beats Cemtrex on 10 of the 15 factors compared between the two stocks.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

About Cemtrex

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.