Japan Display (OTCMKTS:JPDYY) and CTS (NYSE:CTS) Critical Analysis

CTS (NYSE:CTS) and Japan Display (OTCMKTS:JPDYY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

96.9% of CTS shares are held by institutional investors. 2.0% of CTS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for CTS and Japan Display, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	3	0	0	2.00
Japan Display	0	0	0	0	N/A

CTS currently has a consensus target price of $43.67, suggesting a potential downside of 7.15%. Given CTS’s higher probable upside, equities research analysts plainly believe CTS is more favorable than Japan Display.

Profitability

This table compares CTS and Japan Display’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTS	10.70%	11.98%	8.49%
Japan Display	N/A	N/A	N/A

Valuation and Earnings

This table compares CTS and Japan Display”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$550.42 million	2.59	$60.53 million	$1.70	27.66
Japan Display	N/A	N/A	N/A	$33.30	0.04

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

Summary

CTS beats Japan Display on 8 of the 9 factors compared between the two stocks.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.

About Japan Display

Japan Display Inc. designs, manufactures, and sells displays in Japan and internationally. The company offers products for healthcare and medical fields, such as interfaces, display devices, high resolution display devices, and VR systems; industrial use LCD modules; LCD modules for automotive and mobile applications; color OLED display modules for wearables; and Landscape IPS LCD modules for single-lens reflex and high-end compact digital cameras. It also provides transparent interface devices that reduces the communication barrier; LumiFree lighting fixtures; metaverse ultra-high resolution related products; and sensors. In addition, the company is involved in the planning, research, development, design, manufacture, sale, maintenance, rental, leasing, and provision of related solution services of electrical and electronic equipment, and software; and provision of information collection and analysis services, as well as related services comprising biometric information measurement using electronic technology. Japan Display Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.