Critical Analysis: Benchmark Electronics (BHE) and Coherent (NASDAQ:COHR)
Benchmark Electronics (NYSE: BHE) and Coherent (NASDAQ:COHR) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitabiliy, valuation, earnings, risk and institutional ownership.
Volatility and Risk
Benchmark Electronics has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Coherent has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Insider and Institutional Ownership
96.6% of Benchmark Electronics shares are held by institutional investors. Comparatively, 93.3% of Coherent shares are held by institutional investors. 0.9% of Benchmark Electronics shares are held by company insiders. Comparatively, 1.4% of Coherent shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Benchmark Electronics and Coherent’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Benchmark Electronics||$2.33 billion||0.72||$134.66 million||$1.26||26.87|
|Coherent||$1.24 billion||5.46||$276.91 million||$4.93||55.76|
Coherent has higher revenue, but lower earnings than Benchmark Electronics. Benchmark Electronics is trading at a lower price-to-earnings ratio than Coherent, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Benchmark Electronics and Coherent, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Benchmark Electronics currently has a consensus target price of $27.67, indicating a potential downside of 18.27%. Coherent has a consensus target price of $237.50, indicating a potential downside of 13.60%. Given Coherent’s stronger consensus rating and higher possible upside, analysts clearly believe Coherent is more favorable than Benchmark Electronics.
This table compares Benchmark Electronics and Coherent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Coherent beats Benchmark Electronics on 12 of the 14 factors compared between the two stocks.
Benchmark Electronics Company Profile
Benchmark Electronics, Inc. is a provider of electronic manufacturing services. The Company operates through three segments: the Americas, Asia and Europe. It provides services to original equipment manufacturers of industrial control equipment, including equipment for the aerospace and defense industry; telecommunication equipment; computers and related products for business enterprises; medical devices, and testing and instrumentation products. It offers integrated design and manufacturing services. Its operations consist of over three principal areas: manufacturing and assembly operations, including printed circuit boards assemblies and subsystem assembly, box build and systems integration; precision technology manufacturing, which include precision machining, metal joining, assembly and functional testing, and specialized engineering services, and specialized engineering services, such as product design, printed circuit board layout, prototyping, automation and test development.
Coherent Company Profile
Coherent, Inc. is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. It operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC). SLS develops and manufactures configurable products serving the microelectronics, scientific research and government programs, and original equipment manufacturer (OEM) components and instrumentation markets. The Commercial Lasers and Components segment focuses on higher volume products that are offered in set configurations. The product architectures are designed for exchange at the point of use such that substantially all product service and repairs are based upon advanced replacement and depot (that is factory) repair. CLC’s primary markets include materials processing, OEM components, and instrumentation and microelectronics.
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