Critical Survey: ESPEY MFG & ELECTRONICS (ESP) versus Its Rivals

Insider and Institutional Ownership

36.7% of ESPEY MFG & ELECTRONICS shares are held by institutional investors. Comparatively, 64.8% of shares of all “Electronic Components & Accessories” companies are held by institutional investors. 6.8% of ESPEY MFG & ELECTRONICS shares are held by insiders. Comparatively, 4.4% of shares of all “Electronic Components & Accessories” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

ESPEY MFG & ELECTRONICS has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, ESPEY MFG & ELECTRONICS’s rivals have a beta of 0.83, meaning that their average stock price is 17% less volatile than the S&P 500.

Dividends

ESPEY MFG & ELECTRONICS pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. ESPEY MFG & ELECTRONICS pays out 37.3% of its earnings in the form of a dividend. As a group, “Electronic Components & Accessories” companies pay a dividend yield of 3.3% and pay out 2.1% of their earnings in the form of a dividend. ESPEY MFG & ELECTRONICS has increased its dividend for 1 consecutive years. ESPEY MFG & ELECTRONICS lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares ESPEY MFG & ELECTRONICS and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESPEY MFG & ELECTRONICS	N/A	N/A	N/A
ESPEY MFG & ELECTRONICS Competitors	-15.19%	-135.65%	-13.26%

Earnings and Valuation

This table compares ESPEY MFG & ELECTRONICS and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ESPEY MFG & ELECTRONICS	$45.97 million	N/A	15.19
ESPEY MFG & ELECTRONICS Competitors	$1.44 billion	$119.65 million	-1.10

ESPEY MFG & ELECTRONICS’s rivals have higher revenue and earnings than ESPEY MFG & ELECTRONICS. ESPEY MFG & ELECTRONICS is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

About ESPEY MFG & ELECTRONICS

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States and internationally. The company’s principal products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, antennas, and high-power radar systems for use in AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power applications. It also provides various services comprising design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment. In addition, the company produces individual components, such as inductors, printed circuit boards, wires, and tests items. It serves industrial manufacturers and defense companies, the government of the United States, foreign governments, and foreign electronic equipment companies through its direct sales organization and outside sales representatives. The company was incorporated in 1928 and is based in Saratoga Springs, New York.