Comparing Electro Scientific Industries (NASDAQ:ESIO) and Bel Fuse (BELFB)
Bel Fuse (NASDAQ: BELFB) and Electro Scientific Industries (NASDAQ:ESIO) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitabiliy, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
60.1% of Bel Fuse shares are owned by institutional investors. Comparatively, 73.2% of Electro Scientific Industries shares are owned by institutional investors. 8.8% of Bel Fuse shares are owned by insiders. Comparatively, 4.4% of Electro Scientific Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Bel Fuse and Electro Scientific Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electro Scientific Industries||-23.23%||-23.01%||-16.93%|
Risk and Volatility
Bel Fuse has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Electro Scientific Industries has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Electro Scientific Industries does not pay a dividend. Bel Fuse pays out 9.2% of its earnings in the form of a dividend.
This is a summary of recent ratings and recommmendations for Bel Fuse and Electro Scientific Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electro Scientific Industries||0||1||1||0||2.50|
Bel Fuse presently has a consensus target price of $39.00, suggesting a potential upside of 55.38%. Electro Scientific Industries has a consensus target price of $9.00, suggesting a potential upside of 6.13%. Given Bel Fuse’s higher possible upside, research analysts clearly believe Bel Fuse is more favorable than Electro Scientific Industries.
Valuation and Earnings
This table compares Bel Fuse and Electro Scientific Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bel Fuse||$492.64 million||0.61||$49.93 million||$3.03||8.28|
|Electro Scientific Industries||$161.02 million||1.74||-$8.94 million||($1.13)||-7.50|
Bel Fuse has higher revenue and earnings than Electro Scientific Industries. Electro Scientific Industries is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.
Bel Fuse beats Electro Scientific Industries on 10 of the 13 factors compared between the two stocks.
Bel Fuse Company Profile
Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.
Electro Scientific Industries Company Profile
Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.
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