Nidec (NJDCY) vs. Its Rivals Financial Analysis

Nidec (OTCMKTS:NJDCY) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its peers? We will compare Nidec to related companies based on the strength of its dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nidec and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nidec	0	1	0	0	2.00
Nidec Competitors	2055	7628	10456	667	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 35.24%. Given Nidec’s peers stronger consensus rating and higher probable upside, analysts plainly believe Nidec has less favorable growth aspects than its peers.

Volatility and Risk

Nidec has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Nidec’s peers have a beta of -0.30, indicating that their average stock price is 130% less volatile than the S&P 500.

Profitability

This table compares Nidec and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nidec	-17.80%	-33.77%	-13.88%
Nidec Competitors	-141.16%	-27.05%	-7.22%

Valuation & Earnings

This table compares Nidec and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nidec	$17.99 billion	-$3.73 billion	-3.57
Nidec Competitors	$4.16 billion	$172.92 million	4.54

Nidec has higher revenue, but lower earnings than its peers. Nidec is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

0.2% of Nidec shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 16.1% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Nidec peers beat Nidec on 9 of the 12 factors compared.

About Nidec

Nidec Corporation is a Japanese manufacturer of electric motors and related components. Founded in Kyoto in 1973 as Nippon Densan Corporation, the company adopted the name Nidec in 2014. Its products include precision motors used in devices such as hard-disk drives, as well as motors and components for automobiles, home appliances, commercial equipment and industrial applications. Nidec also supplies machinery and other products used in manufacturing. Headquartered in Kyoto, Nidec serves customers around the world through operations across Asia, the Americas and Europe.