Electro Scientific Industries (NASDAQ: ESIO) is one of 32 publicly-traded companies in the “Electronic Component” industry, but how does it contrast to its competitors? We will compare Electro Scientific Industries to related businesses based on the strength of its profitability, analyst recommendations, earnings, risk, dividends, institutional ownership and valuation.

Risk & Volatility

Electro Scientific Industries has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Electro Scientific Industries’ competitors have a beta of 1.03, suggesting that their average share price is 3% more volatile than the S&P 500.

Profitability

This table compares Electro Scientific Industries and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electro Scientific Industries -18.49% -22.18% -15.53%
Electro Scientific Industries Competitors 1.90% -2.19% 0.48%

Insider and Institutional Ownership

73.2% of Electro Scientific Industries shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Electronic Component” companies are owned by institutional investors. 6.2% of Electro Scientific Industries shares are owned by insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Electro Scientific Industries and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Electro Scientific Industries $186.04 million $2.78 million -14.10
Electro Scientific Industries Competitors $894.66 million $186.07 million 11.33

Electro Scientific Industries’ competitors have higher revenue and earnings than Electro Scientific Industries. Electro Scientific Industries is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations for Electro Scientific Industries and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electro Scientific Industries 0 0 2 0 3.00
Electro Scientific Industries Competitors 42 258 466 6 2.56

Electro Scientific Industries presently has a consensus price target of $13.25, suggesting a potential downside of 10.47%. As a group, “Electronic Component” companies have a potential downside of 9.29%. Given Electro Scientific Industries’ competitors higher probable upside, analysts clearly believe Electro Scientific Industries has less favorable growth aspects than its competitors.

Summary

Electro Scientific Industries competitors beat Electro Scientific Industries on 9 of the 12 factors compared.

About Electro Scientific Industries

Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.

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