NSK vs NTN Which Is More Reliable?

NSK and NTN are two prominent companies in the manufacturing industry that specialize in producing bearings for various applications. Both companies have established a strong presence in the global market and are known for their high-quality products. Investors interested in the manufacturing sector often compare the stock performance of NSK and NTN to make informed investment decisions. By analyzing factors such as revenue growth, market share, and overall financial stability, investors can determine which company's stocks may offer better potential for long-term growth and profitability.

NSK or NTN?

When comparing NSK and NTN, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NSK and NTN.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NSK has a dividend yield of 4.72%, while NTN has a dividend yield of 4.28%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NSK reports a 5-year dividend growth of -6.06% year and a payout ratio of 149.48%. On the other hand, NTN reports a 5-year dividend growth of 0.00% year and a payout ratio of 123.11%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NSK P/E ratio at 33.90 and NTN's P/E ratio at 30.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NSK P/B ratio is 0.52 while NTN's P/B ratio is 0.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NSK has seen a 5-year revenue growth of -0.16%, while NTN's is 0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NSK's ROE at 1.51% and NTN's ROE at 1.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥675.60 for NSK and ¥244.60 for NTN. Over the past year, NSK's prices ranged from ¥651.10 to ¥904.00, with a yearly change of 38.84%. NTN's prices fluctuated between ¥230.10 and ¥338.40, with a yearly change of 47.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.