Reviewing Advanced Energy Industries (NASDAQ:AEIS) & Daikin Industries (OTCMKTS:DKILY)

Daikin Industries (OTCMKTS:DKILYGet Free Report) and Advanced Energy Industries (NASDAQ:AEISGet Free Report) are both large-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Valuation and Earnings

This table compares Daikin Industries and Advanced Energy Industries”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daikin Industries $33.31 billion 1.17 $1.82 billion $0.61 21.75
Advanced Energy Industries $1.80 billion 6.06 $148.40 million $5.36 50.78

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

Dividends

Daikin Industries pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. Advanced Energy Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.1%. Daikin Industries pays out 21.3% of its earnings in the form of a dividend. Advanced Energy Industries pays out 7.5% 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.

Profitability

This table compares Daikin Industries and Advanced Energy Industries’ 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%
Advanced Energy Industries 10.77% 20.75% 10.39%

Analyst Recommendations

This is a summary of current ratings for Daikin Industries and Advanced Energy Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daikin Industries 0 1 0 0 2.00
Advanced Energy Industries 0 2 11 1 2.93

Advanced Energy Industries has a consensus price target of $409.50, suggesting a potential upside of 50.46%. Given Advanced Energy Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Advanced Energy Industries is more favorable than Daikin Industries.

Insider & Institutional Ownership

99.7% of Advanced Energy Industries shares are owned by institutional investors. 1.3% of Advanced Energy Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Daikin Industries has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Summary

Advanced Energy Industries beats Daikin Industries on 14 of the 17 factors compared between the two stocks.

About Daikin Industries

(Get Free Report)

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 Advanced Energy Industries

(Get Free Report)

Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

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