Daikin Industries (OTCMKTS:DKILY) vs. Garmin (NYSE:GRMN) Financial Analysis

Garmin (NYSE:GRMN) and Daikin Industries (OTCMKTS:DKILY) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings for Garmin and Daikin Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	1	2	2	1	2.50
Daikin Industries	0	0	0	0	0.00

Garmin currently has a consensus price target of $244.40, indicating a potential upside of 19.36%. Given Garmin’s stronger consensus rating and higher probable upside, research analysts clearly believe Garmin is more favorable than Daikin Industries.

Dividends

Garmin pays an annual dividend of $3.60 per share and has a dividend yield of 1.8%. Daikin Industries pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Garmin pays out 44.3% of its earnings in the form of a dividend. Daikin Industries pays out 22.6% 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. Garmin has increased its dividend for 8 consecutive years. Garmin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Garmin and Daikin Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garmin	22.63%	19.42%	15.73%
Daikin Industries	5.80%	9.16%	5.12%

Earnings & Valuation

This table compares Garmin and Daikin Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$6.30 billion	6.25	$1.41 billion	$8.12	25.22
Daikin Industries	$31.21 billion	1.17	$1.75 billion	$0.62	20.02

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

Insider and Institutional Ownership

81.6% of Garmin shares are held by institutional investors. 19.5% of Garmin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Garmin has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Daikin Industries has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Summary

Garmin beats Daikin Industries on 15 of the 18 factors compared between the two stocks.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

About Daikin Industries

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.