Orion Energy Systems (NASDAQ:OESX) & Hubbell (NYSE:HUBB) Head-To-Head Review

Hubbell (NYSE:HUBB) and Orion Energy Systems (NASDAQ:OESX) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

88.2% of Hubbell shares are held by institutional investors. Comparatively, 52.6% of Orion Energy Systems shares are held by institutional investors. 0.6% of Hubbell shares are held by insiders. Comparatively, 5.3% of Orion Energy Systems shares are held 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.

Valuation & Earnings

This table compares Hubbell and Orion Energy Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hubbell	$6.59 billion	3.57	$887.10 million	$17.06	26.14
Orion Energy Systems	$86.31 million	0.66	-$3.16 million	($0.08)	-173.25

Hubbell has higher revenue and earnings than Orion Energy Systems. Orion Energy Systems is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Hubbell has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Orion Energy Systems has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hubbell and Orion Energy Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hubbell	0	5	6	0	2.55
Orion Energy Systems	1	1	2	0	2.25

Hubbell currently has a consensus target price of $544.22, suggesting a potential upside of 22.04%. Orion Energy Systems has a consensus target price of $36.50, suggesting a potential upside of 163.35%. Given Orion Energy Systems’ higher probable upside, analysts clearly believe Orion Energy Systems is more favorable than Hubbell.

Profitability

This table compares Hubbell and Orion Energy Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hubbell	13.78%	27.33%	10.61%
Orion Energy Systems	-0.20%	10.23%	3.31%

Summary

Hubbell beats Orion Energy Systems on 11 of the 14 factors compared between the two stocks.

About Hubbell

Hubbell Incorporated is a manufacturer of electrical and utility products serving customers in the energy, industrial, commercial and residential markets. Its products help support the generation, transmission and distribution of electricity, as well as the installation and use of electrical systems. The company’s Utility Solutions business makes products such as connectors, insulators, arresters and other equipment used in electric utility networks. Its Electrical Solutions business supplies wiring devices, lighting and controls, enclosures and related products for buildings and industrial applications.

About Orion Energy Systems

Orion Energy Systems, Inc. (NASDAQ: OESX) is an energy-efficiency technology company that designs, manufactures and delivers lighting and energy-management solutions for commercial and industrial facilities. Its offerings are intended to help organizations improve illumination, reduce energy consumption and modernize building operations. The company’s products and services include LED lighting fixtures and retrofit systems, intelligent lighting controls, and related energy-management technologies.