Analyzing Daikin Industries (OTCMKTS:DKILY) and Veralto (NYSE:VLTO)

Daikin Industries (OTCMKTS:DKILY) and Veralto (NYSE:VLTO) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Risk and Volatility

Daikin Industries has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Veralto has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Earnings & Valuation

This table compares Daikin Industries and Veralto”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daikin Industries	$33.31 billion	1.19	$1.82 billion	$0.61	22.21
Veralto	$5.50 billion	4.17	$940.00 million	$3.96	23.79

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

Institutional & Insider Ownership

91.3% of Veralto shares are owned by institutional investors. 0.4% of Veralto shares are owned by company 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

Daikin Industries pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. Veralto pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Daikin Industries pays out 21.3% of its earnings in the form of a dividend. Veralto pays out 13.1% 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. Veralto has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Daikin Industries and Veralto, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daikin Industries	0	1	0	0	2.00
Veralto	0	4	6	0	2.60

Veralto has a consensus price target of $110.90, suggesting a potential upside of 17.70%. Given Veralto’s stronger consensus rating and higher probable upside, analysts clearly believe Veralto is more favorable than Daikin Industries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Daikin Industries	5.24%	8.73%	4.85%
Veralto	17.35%	34.76%	13.38%

Summary

Veralto beats Daikin Industries on 13 of the 17 factors compared between the two stocks.

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.

About Veralto

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers inline printing solutions for products and packaging with marking and coding systems; marking and coding for packaged goods and related consumables; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; color standard services for the design industry; and a software solution that provides digital asset management, marketing resource management, and product information management. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands to regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.