Contrasting Qorvo (NASDAQ:QRVO) & Nitto Denko (OTCMKTS:NDEKY)

Nitto Denko (OTCMKTS:NDEKY) and Qorvo (NASDAQ:QRVO) are both large-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Earnings & Valuation

This table compares Nitto Denko and Qorvo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nitto Denko	$6.83 billion	2.25	$881.09 million	$1.31	17.31
Qorvo	$3.64 billion	2.76	$338.99 million	$4.31	26.49

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

Volatility and Risk

Nitto Denko has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

88.6% of Qorvo shares are held by institutional investors. 0.5% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Nitto Denko and Qorvo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nitto Denko	12.94%	12.13%	9.66%
Qorvo	10.95%	17.23%	10.06%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nitto Denko and Qorvo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitto Denko	0	1	0	0	2.00
Qorvo	1	14	3	0	2.11

Qorvo has a consensus price target of $94.00, indicating a potential downside of 17.67%. Given Qorvo’s stronger consensus rating and higher possible upside, analysts clearly believe Qorvo is more favorable than Nitto Denko.

Summary

Qorvo beats Nitto Denko on 11 of the 14 factors compared between the two stocks.

About Nitto Denko

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.

About Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.