Kimball Electronics (NASDAQ: KE) and Hubbell (NYSE:HUBB) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
57.3% of Kimball Electronics shares are held by institutional investors. Comparatively, 85.2% of Hubbell shares are held by institutional investors. 3.9% of Kimball Electronics shares are held by insiders. Comparatively, 1.3% of Hubbell shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Kimball Electronics and Hubbell, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hubbell has a consensus price target of $136.75, suggesting a potential downside of 1.77%. Given Hubbell’s higher probable upside, analysts plainly believe Hubbell is more favorable than Kimball Electronics.
Earnings & Valuation
This table compares Kimball Electronics and Hubbell’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kimball Electronics||$930.91 million||0.54||$34.17 million||$1.19||15.84|
|Hubbell||$3.51 billion||2.17||$293.00 million||$5.19||26.82|
Hubbell has higher revenue and earnings than Kimball Electronics. Kimball Electronics is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
Hubbell pays an annual dividend of $3.08 per share and has a dividend yield of 2.2%. Kimball Electronics does not pay a dividend. Hubbell pays out 59.3% of its earnings in the form of a dividend.
Volatility and Risk
Kimball Electronics has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Hubbell has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
This table compares Kimball Electronics and Hubbell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hubbell beats Kimball Electronics on 13 of the 15 factors compared between the two stocks.
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.
Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.
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