Head-To-Head Comparison: Tokyo Electron (OTCMKTS:TOELY) vs. Osram Licht (OTCMKTS:OSAGF)

Tokyo Electron (OTCMKTS:TOELY) and Osram Licht (OTCMKTS:OSAGF) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Tokyo Electron and Osram Licht’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	21.74%	29.10%	21.06%
Osram Licht	-3.27%	3.12%	0.56%

Valuation & Earnings

This table compares Tokyo Electron and Osram Licht”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$15.97 billion	6.03	$3.59 billion	$3.94	26.53
Osram Licht	$3.71 billion	15.91	-$850.53 million	($1.23)	-48.07

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

Insider and Institutional Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Tokyo Electron and Osram Licht, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	1	0	0	2.00
Osram Licht	0	0	0	0	0.00

Volatility and Risk

Tokyo Electron has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Osram Licht has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Summary

Tokyo Electron beats Osram Licht on 10 of the 11 factors compared between the two stocks.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.

About Osram Licht

OSRAM Licht AG provides various lighting products and solutions worldwide. It operates through three segments: Opto Semiconductors, Automotive, and Digital. The company was formerly known as Kyros A AG and changed its name to OSRAM Licht AG in November 2012. OSRAM Licht AG was incorporated in 2012 and is headquartered in Munich, Germany. OSRAM Licht AG operates as a subsidiary of ams-OSRAM AG.