Financial Analysis: Revolution Lighting Technologies (RVLT) versus Preformed Line Products (PLPC)

Revolution Lighting Technologies (NASDAQ: RVLT) and Preformed Line Products (NASDAQ:PLPC) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Revolution Lighting Technologies and Preformed Line Products’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Revolution Lighting Technologies $172.10 million 0.51 -$520,000.00 ($0.31) -13.32
Preformed Line Products $336.63 million 0.98 $15.25 million $3.33 19.48

Preformed Line Products has higher revenue and earnings than Revolution Lighting Technologies. Revolution Lighting Technologies is trading at a lower price-to-earnings ratio than Preformed Line Products, indicating that it is currently the more affordable of the two stocks.

Dividends

Preformed Line Products pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Revolution Lighting Technologies does not pay a dividend. Preformed Line Products pays out 24.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

36.3% of Revolution Lighting Technologies shares are held by institutional investors. Comparatively, 44.7% of Preformed Line Products shares are held by institutional investors. 42.0% of Revolution Lighting Technologies shares are held by insiders. Comparatively, 37.7% of Preformed Line Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Revolution Lighting Technologies and Preformed Line Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Revolution Lighting Technologies -3.94% -2.39% -1.36%
Preformed Line Products 4.64% 7.30% 4.85%

Analyst Ratings

This is a summary of recent recommendations and price targets for Revolution Lighting Technologies and Preformed Line Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Revolution Lighting Technologies 0 0 2 0 3.00
Preformed Line Products 0 0 0 0 N/A

Revolution Lighting Technologies presently has a consensus target price of $6.50, suggesting a potential upside of 57.38%. Given Revolution Lighting Technologies’ higher possible upside, research analysts clearly believe Revolution Lighting Technologies is more favorable than Preformed Line Products.

Risk & Volatility

Revolution Lighting Technologies has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Summary

Preformed Line Products beats Revolution Lighting Technologies on 10 of the 15 factors compared between the two stocks.

Revolution Lighting Technologies Company Profile

Revolution Lighting Technologies, Inc. designs, manufactures, markets and sells commercial grade light-emitting diode (LED) and conventional lighting fixtures. The Company operates in Lighting Products and Solutions (principally LED fixtures and lamps) segment. The Company’s products are used for outdoor and indoor applications, LED-based signage, channel-letter and contour lighting products, LED replacement lamps and commercial grade smart grid control systems. It sells its LED products under the RVLT, Seesmart, Lumificient, Value Lighting, Array and CMG brand names. The Company’s commercial lamps and fixtures products include the commercial indoor and outdoor lighting products, such as linear tube lighting, multi-family lighting, commercial troffer lighting and street lighting. It caters to municipal and commercial markets, which include industrial, hospitality, institutional, educational, healthcare and signage markets in the United States, Canada and internationally.

Preformed Line Products Company Profile

Preformed Line Products Company (PLPC) is a designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators and information industries. The Company’s products include Formed Wire and Related Hardware Products, Protective Closures, Plastic Products and Other Products. The Company operates through four segments: PLP-USA (including corporate), The Americas (includes operations in North and South America without PLP-USA), EMEA (Europe, Middle East and Africa) and Asia-Pacific. The Company’s PLP-USA segment consists of its United States operations manufacturing its traditional products primarily supporting its domestic energy, telecommunications and solar products. Its other three segments, The Americas, EMEA and Asia-Pacific, support its energy, telecommunications, data communication and solar products in each respective geographical region.

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