Head-To-Head Comparison: TDK (OTCMKTS:TTDKY) vs. CTS (NYSE:CTS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TDK	6.73%	8.25%	4.13%
CTS	12.32%	12.31%	8.53%

Dividends

TDK pays an annual dividend of $0.15 per share and has a dividend yield of 0.9%. CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. TDK pays out 28.8% of its earnings in the form of a dividend. CTS 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.

Earnings and Valuation

This table compares TDK and CTS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TDK	$14.48 billion	2.24	$1.10 billion	$0.52	32.13
CTS	$520.94 million	2.38	$58.11 million	$2.12	19.86

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

Analyst Ratings

This is a summary of current ratings and target prices for TDK and CTS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	0	0	0	0.00
CTS	0	1	0	0	2.00

Risk & Volatility

TDK has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, CTS has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

96.9% of CTS shares are owned by institutional investors. 0.0% of TDK shares are owned by company insiders. Comparatively, 1.6% of CTS shares are owned by company 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.

Summary

CTS beats TDK on 10 of the 14 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 CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.