Atkore International Group (NYSE: ATKR) and Kimball Electronics (NASDAQ:KE) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

98.3% of Atkore International Group shares are owned by institutional investors. Comparatively, 56.6% of Kimball Electronics shares are owned by institutional investors. 51.0% of Atkore International Group shares are owned by insiders. Comparatively, 3.9% of Kimball Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Atkore International Group and Kimball Electronics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atkore International Group $1.50 billion 0.91 $84.63 million $1.27 17.08
Kimball Electronics $930.91 million 0.56 $34.17 million $1.19 16.22

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Atkore International Group and Kimball Electronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atkore International Group 0 0 3 0 3.00
Kimball Electronics 0 0 0 0 N/A

Atkore International Group currently has a consensus target price of $23.67, indicating a potential upside of 9.11%. Given Atkore International Group’s higher possible upside, research analysts plainly believe Atkore International Group is more favorable than Kimball Electronics.

Profitability

This table compares Atkore International Group and Kimball Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atkore International Group 5.63% 26.22% 7.73%
Kimball Electronics 3.40% 9.63% 5.95%

Summary

Atkore International Group beats Kimball Electronics on 12 of the 12 factors compared between the two stocks.

Atkore International Group Company Profile

Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.

Kimball Electronics Company Profile

Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.

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