Analyzing Jabil (JBL) and Kyocera (KYO)

Kyocera (NYSE: KYO) and Jabil (NYSE:JBL) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Institutional & Insider Ownership

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0.6% of Kyocera shares are owned by institutional investors. Comparatively, 99.8% of Jabil shares are owned by institutional investors. 2.6% of Jabil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Kyocera and Jabil’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kyocera $12.70 billion 1.64 $965.73 million $3.00 18.87
Jabil $19.06 billion 0.28 $129.09 million $0.67 45.64

Kyocera has higher earnings, but lower revenue than Jabil. Kyocera is trading at a lower price-to-earnings ratio than Jabil, indicating that it is currently the more affordable of the two stocks.

Dividends

Kyocera pays an annual dividend of $0.95 per share and has a dividend yield of 1.7%. Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Kyocera pays out 31.7% of its earnings in the form of a dividend. Jabil pays out 47.8% 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. Kyocera has raised its dividend for 2 consecutive years. Kyocera is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Kyocera has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Jabil has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Kyocera and Jabil, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kyocera 0 0 3 0 3.00
Jabil 2 4 5 0 2.27

Jabil has a consensus target price of $32.50, indicating a potential upside of 6.28%. Given Jabil’s higher possible upside, analysts plainly believe Jabil is more favorable than Kyocera.

Profitability

This table compares Kyocera and Jabil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kyocera 7.94% 4.94% 3.84%
Jabil 0.60% 14.31% 3.01%

Summary

Kyocera beats Jabil on 10 of the 17 factors compared between the two stocks.

About Kyocera

Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.

About Jabil

Jabil Inc., formerly Jabil Circuit, Inc., provides electronic manufacturing services and solutions throughout the world. The Company operates in two segments, which include Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). The Company’s EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its large scale manufacturing infrastructure and the ability to serve a range of markets. Its DMS segment is focused on providing engineering solutions and a focus on material sciences and technologies. It provides electronic design, production and product management services to companies in the automotive, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, emerging growth, healthcare, industrial and energy, mobility, packaging, point of sale and printing industries.

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