Head-To-Head Survey: Kimball Electronics (NASDAQ:KE) & SiTime (NASDAQ:SITM)

Kimball Electronics (NASDAQ:KE) and SiTime (NASDAQ:SITM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

76.0% of Kimball Electronics shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 2.8% of Kimball Electronics shares are owned by company insiders. Comparatively, 2.1% of SiTime shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Kimball Electronics and SiTime”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimball Electronics	$1.49 billion	0.51	$16.98 million	$0.95	32.60
SiTime	$202.70 million	46.71	-$93.60 million	($2.96)	-122.54

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

Risk and Volatility

Kimball Electronics has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Profitability

This table compares Kimball Electronics and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimball Electronics	1.62%	6.28%	3.26%
SiTime	-25.18%	-5.69%	-4.76%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kimball Electronics and SiTime, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimball Electronics	0	2	2	0	2.50
SiTime	1	1	7	0	2.67

Kimball Electronics presently has a consensus price target of $32.00, suggesting a potential upside of 3.33%. SiTime has a consensus price target of $360.63, suggesting a potential downside of 0.58%. Given Kimball Electronics’ higher possible upside, analysts clearly believe Kimball Electronics is more favorable than SiTime.

Summary

Kimball Electronics beats SiTime on 9 of the 14 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.