EMC (NYSE: EMC) and Knowles Corporation (NYSE:KN) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Volatility and Risk

EMC has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares EMC and Knowles Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EMC N/A N/A N/A $1.07 27.15
Knowles Corporation $867.60 million 1.61 $141.10 million ($0.23) -68.00

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

Profitability

This table compares EMC and Knowles Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMC 10.47% 10.66% 5.47%
Knowles Corporation -2.44% 6.98% 4.62%

Insider & Institutional Ownership

79.9% of EMC shares are owned by institutional investors. 0.4% of EMC shares are owned by company insiders. Comparatively, 2.2% of Knowles Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for EMC and Knowles Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMC 0 0 1 0 3.00
Knowles Corporation 0 1 2 0 2.67

Knowles Corporation has a consensus target price of $19.33, indicating a potential upside of 23.61%. Given Knowles Corporation’s higher possible upside, analysts plainly believe Knowles Corporation is more favorable than EMC.

Dividends

EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Knowles Corporation does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. EMC has increased its dividend for 3 consecutive years.

Summary

EMC beats Knowles Corporation on 9 of the 14 factors compared between the two stocks.

EMC Company Profile

EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.

Knowles Corporation Company Profile

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

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