Comparing nVent Electric (NYSE:NVT) and AAC Technologies (OTCMKTS:AACAY)

AAC Technologies (OTCMKTS:AACAY) and nVent Electric (NYSE:NVT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

AAC Technologies pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. nVent Electric pays out 27.9% of its earnings in the form of a dividend. nVent Electric has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for AAC Technologies and nVent Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAC Technologies	0	1	0	0	2.00
nVent Electric	0	1	11	1	3.00

nVent Electric has a consensus price target of $184.20, indicating a potential upside of 12.62%. Given nVent Electric’s stronger consensus rating and higher probable upside, analysts clearly believe nVent Electric is more favorable than AAC Technologies.

Valuation and Earnings

This table compares AAC Technologies and nVent Electric”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAC Technologies	$4.43 billion	1.41	$349.42 million	N/A	N/A
nVent Electric	$3.89 billion	6.79	$710.20 million	$3.01	54.34

nVent Electric has lower revenue, but higher earnings than AAC Technologies.

Profitability

This table compares AAC Technologies and nVent Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAC Technologies	N/A	N/A	N/A
nVent Electric	11.37%	16.82%	9.03%

Risk and Volatility

AAC Technologies has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

90.1% of nVent Electric shares are held by institutional investors. 1.7% of nVent Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

nVent Electric beats AAC Technologies on 13 of the 16 factors compared between the two stocks.

About AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.