Critical Contrast: Orbit International (OTCMKTS:ORBT) versus YASKAWA Electric (OTCMKTS:YASKF)

YASKAWA Electric (OTCMKTS:YASKF) and Orbit International (OTCMKTS:ORBT) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares YASKAWA Electric and Orbit International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YASKAWA Electric	N/A	N/A	N/A	$85.05	0.34
Orbit International	$27.56 million	0.59	-$1.15 million	($0.23)	-19.87

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

Profitability

This table compares YASKAWA Electric and Orbit International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YASKAWA Electric	N/A	N/A	N/A
Orbit International	-1.88%	-2.91%	-2.00%

Dividends

YASKAWA Electric pays an annual dividend of $11.18 per share and has a dividend yield of 38.2%. Orbit International pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. YASKAWA Electric pays out 13.1% of its earnings in the form of a dividend. Orbit International pays out -8.7% 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.

Analyst Recommendations

This is a breakdown of current ratings for YASKAWA Electric and Orbit International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YASKAWA Electric	0	0	0	0	N/A
Orbit International	0	0	0	0	N/A

Institutional & Insider Ownership

26.8% of YASKAWA Electric shares are owned by institutional investors. 11.3% of Orbit International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

YASKAWA Electric beats Orbit International on 7 of the 10 factors compared between the two stocks.

About YASKAWA Electric

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. The company was founded in 1915 and is headquartered in Kitakyushu, Japan.

About Orbit International

Orbit International Corp. engages in the design, manufacture, and sale of electronic components and subsystems, and commercial and custom power units for prime contractors, government procurement agencies, and research and development laboratories worldwide. The company operates in two segments, Electronics Group and Power Group. The Electronics Group segment designs, manufactures, and sells customized electronic components and subsystems. This segment offers remote control units, intercommunication panels, displays, keyboards, keypads and pointing devices, operator control trays, and command display units, as well as provides LCD display modules, military simulation and training bezels, electronic control assemblies, and multi-function displays design and enhancement services. The Power Group segment designs and manufactures commercial power units, AC power, frequency converters, uninterruptible power supplies, armament systems, and commercial-off-the-shelf power solutions, as well as inverters. The company was formerly known as Orbit Instrument Corp. and changed its name to Orbit International Corp. in July 1991. Orbit International Corp. was founded in 1957 and is based in Hauppauge, New York.