American Superconductor Corporation (NASDAQ: AMSC) and Kimball Electronics (NASDAQ:KE) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider & Institutional Ownership

29.9% of American Superconductor Corporation shares are held by institutional investors. Comparatively, 57.1% of Kimball Electronics shares are held by institutional investors. 2.6% of American Superconductor Corporation shares are held by company insiders. Comparatively, 3.2% of Kimball Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for American Superconductor Corporation and Kimball Electronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Superconductor Corporation 0 0 6 0 3.00
Kimball Electronics 0 0 1 0 3.00

American Superconductor Corporation currently has a consensus price target of $8.50, suggesting a potential upside of 101.90%. Kimball Electronics has a consensus price target of $17.00, suggesting a potential downside of 13.27%. Given American Superconductor Corporation’s higher probable upside, equities research analysts plainly believe American Superconductor Corporation is more favorable than Kimball Electronics.

Risk & Volatility

American Superconductor Corporation has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares American Superconductor Corporation and Kimball Electronics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Superconductor Corporation $75.20 million 1.04 -$20.02 million ($1.99) -2.12
Kimball Electronics $910.05 million 0.58 $62.52 million $1.14 17.19

Kimball Electronics has higher revenue and earnings than American Superconductor Corporation. American Superconductor Corporation is trading at a lower price-to-earnings ratio than Kimball Electronics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Superconductor Corporation and Kimball Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Superconductor Corporation -36.40% -42.53% -24.82%
Kimball Electronics 3.50% 8.65% 5.42%

Summary

Kimball Electronics beats American Superconductor Corporation on 8 of the 12 factors compared between the two stocks.

About American Superconductor Corporation

American Superconductor Corporation (AMSC) is a provider of megawatt-scale solutions. The Company operates through two segments: Wind and Grid. Through the Company’s Windtec Solutions brand, the Wind business segment enables manufacturers to field wind turbines. Through the Company’s Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power. AMSC supplies power electronics and control systems, licenses its engineered wind turbine designs and provides customer support services to wind turbine manufacturers. The Company provides a range of power electronics and software-based control systems. AMSC provides transmission planning services that enable it to identify power grid congestion and other risks. The Company also sells grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems.

About Kimball Electronics

Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.

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