Financial Review: Aquantia (AQ) and Park Electrochemical (PKE)

Aquantia (NYSE: AQ) and Park Electrochemical (NYSE:PKE) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Insider & Institutional Ownership

0.2% of Aquantia shares are owned by institutional investors. Comparatively, 81.8% of Park Electrochemical shares are owned by institutional investors. 8.0% of Park Electrochemical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Park Electrochemical pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Aquantia does not pay a dividend. Park Electrochemical pays out 153.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Aquantia and Park Electrochemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aquantia N/A N/A N/A
Park Electrochemical 4.60% 4.69% 2.78%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Aquantia and Park Electrochemical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aquantia 0 0 5 0 3.00
Park Electrochemical 0 0 1 0 3.00

Aquantia presently has a consensus target price of $14.80, indicating a potential downside of 2.05%. Park Electrochemical has a consensus target price of $24.00, indicating a potential upside of 34.98%. Given Park Electrochemical’s higher probable upside, analysts plainly believe Park Electrochemical is more favorable than Aquantia.

Earnings and Valuation

This table compares Aquantia and Park Electrochemical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aquantia $86.67 million 5.84 -$440,000.00 ($0.31) -48.74
Park Electrochemical $114.61 million 3.14 $9.28 million $0.26 68.39

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

Summary

Park Electrochemical beats Aquantia on 11 of the 14 factors compared between the two stocks.

About Aquantia

Aquantia Corp is engaged in developing and supplying connectivity solutions for data centers, enterprise and wireless local area network (WLAN) applications. The Company offers 10 gigabyte Ethernet and Multi-Gig Ethernet Silicon product for data center and cloud, and the enterprise and WLAN markets. For data center and cloud market, it offers 10GBASE-T PHYs product line, which includes 28 nanometer technology products, such as AQ2402, AQ2403, AQ2203 and AQ2104; 40 nanometer technology products, such as AQ1402, AQ1202 and AQ1103, and 90 nanometer technology product, AQ1002. For enterprise and WLAN market, it offers AQrate product line, including 28 nanometer technology products, such as AQR405, AQR205 and AQR105. Its AQrate product line consists of single, dual and quad-port configurations for applications ranging from client personal computers and others for single and dual-port devices, to Enterprise and Campus Ethernet switches for the quad-port versions.

About Park Electrochemical

Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.

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