Critical Analysis: Omron (OTCMKTS:OMRNY) and Surge Component (OTCMKTS:SPRS)

Surge Component (OTCMKTS:SPRS) and Omron (OTCMKTS:OMRNY) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Risk and Volatility

Surge Component has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Omron has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Surge Component and Omron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surge Component	0	0	0	0	0.00
Omron	0	1	0	0	2.00

Profitability

This table compares Surge Component and Omron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surge Component	2.80%	4.98%	3.87%
Omron	3.66%	2.92%	1.98%

Insider and Institutional Ownership

1.1% of Omron shares are held by institutional investors. 56.0% of Surge Component shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Surge Component and Omron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surge Component	$36.32 million	0.56	$1.14 million	$0.18	19.39
Omron	$5.10 billion	1.33	$189.24 million	$0.95	36.40

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

Summary

Omron beats Surge Component on 9 of the 12 factors compared between the two stocks.

About Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.