Contrasting Electro Scientific Industries (NASDAQ:ESIO) and Bel Fuse (BELFB)
Bel Fuse (NASDAQ: BELFB) and Electro Scientific Industries (NASDAQ:ESIO) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, institutional ownership, risk and dividends.
This is a summary of current recommendations for Bel Fuse and Electro Scientific Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electro Scientific Industries||0||1||1||0||2.50|
Bel Fuse currently has a consensus price target of $39.00, indicating a potential upside of 55.69%. Electro Scientific Industries has a consensus price target of $9.00, indicating a potential upside of 5.88%. Given Bel Fuse’s higher possible upside, research analysts clearly believe Bel Fuse is more favorable than Electro Scientific Industries.
This table compares Bel Fuse and Electro Scientific Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electro Scientific Industries||-23.23%||-23.01%||-16.93%|
Volatility & Risk
Bel Fuse has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Electro Scientific Industries has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Electro Scientific Industries does not pay a dividend. Bel Fuse pays out 9.2% of its earnings in the form of a dividend.
Insider & Institutional Ownership
60.1% of Bel Fuse shares are held by institutional investors. Comparatively, 73.2% of Electro Scientific Industries shares are held by institutional investors. 8.8% of Bel Fuse shares are held by company insiders. Comparatively, 4.4% of Electro Scientific Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Bel Fuse and Electro Scientific Industries’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bel Fuse||$492.64 million||0.61||$49.93 million||$3.03||8.27|
|Electro Scientific Industries||$161.02 million||1.75||-$8.94 million||($1.13)||-7.52|
Bel Fuse has higher revenue and earnings than Electro Scientific Industries. Electro Scientific Industries is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.
Bel Fuse beats Electro Scientific Industries on 10 of the 13 factors compared between the two stocks.
Bel Fuse Company Profile
Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.
Electro Scientific Industries Company Profile
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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