Lexmark International (NYSE: LXK) and Knowles Corporation (NYSE:KN) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitabiliy, valuation and risk.

Valuation and Earnings

This table compares Lexmark International and Knowles Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lexmark International N/A N/A N/A ($1.08) -37.49
Knowles Corporation $867.70 million 1.78 $141.40 million ($0.18) -96.17

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

Volatility and Risk

Lexmark International has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lexmark International and Knowles Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lexmark International 0 0 0 0 N/A
Knowles Corporation 0 3 3 0 2.50

Knowles Corporation has a consensus price target of $17.33, suggesting a potential upside of 0.13%. Given Knowles Corporation’s higher possible upside, analysts clearly believe Knowles Corporation is more favorable than Lexmark International.

Profitability

This table compares Lexmark International and Knowles Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lexmark International 2.17% 7.30% 2.01%
Knowles Corporation -1.86% 6.69% 4.35%

Insider & Institutional Ownership

81.8% of Lexmark International shares are held by institutional investors. 2.8% of Lexmark International shares are held by insiders. Comparatively, 2.2% of Knowles Corporation shares are held by 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.

Dividends

Lexmark International pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Knowles Corporation does not pay a dividend. Lexmark International pays out -133.3% of its earnings in the form of a dividend. Lexmark International has raised its dividend for 6 consecutive years.

Summary

Lexmark International beats Knowles Corporation on 8 of the 13 factors compared between the two stocks.

Lexmark International Company Profile

Lexmark International, Inc. is a United States-based company, which is a provider of printing and imaging products, software, solutions and services. The Company’s software scans everything from spreadsheets to medical images, and provides services to banking, healthcare, insurance and retail companies. It creates enterprise software, hardware and services that remove inefficiencies of information silos and disconnected processes. It offers various services, such as managed print services, hardware warranty and repair service, professional services and enterprise software services. It offers solutions, such as financial process automation, business process management, Web information integration and consumer loan origination. Its hardware category includes equipment collection program, and Smart multifunction product (MFP) includes device management and mobile print solutions. It produces and distributes millions of supplies each year, including ink, toner and paper.

Knowles Corporation Company Profile

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

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