Critical Contrast: Kimball Electronics (NASDAQ:KE) and Spruce Power (NYSE:SPRU)

Kimball Electronics (NASDAQ:KE) and Spruce Power (NYSE:SPRU) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Risk and Volatility

Kimball Electronics has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares Kimball Electronics and Spruce Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimball Electronics	1.65%	6.09%	3.21%
Spruce Power	-23.23%	-18.82%	-2.86%

Earnings & Valuation

This table compares Kimball Electronics and Spruce Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimball Electronics	$1.49 billion	0.38	$16.98 million	$0.96	24.31
Spruce Power	$82.11 million	0.89	-$70.49 million	($1.38)	-2.92

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

Institutional & Insider Ownership

76.0% of Kimball Electronics shares are owned by institutional investors. Comparatively, 20.8% of Spruce Power shares are owned by institutional investors. 2.8% of Kimball Electronics shares are owned by company insiders. Comparatively, 12.7% of Spruce Power shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Kimball Electronics and Spruce Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimball Electronics	0	2	2	0	2.50
Spruce Power	1	0	0	0	1.00

Kimball Electronics presently has a consensus target price of $32.00, suggesting a potential upside of 37.10%. Given Kimball Electronics’ stronger consensus rating and higher probable upside, research analysts clearly believe Kimball Electronics is more favorable than Spruce Power.

Summary

Kimball Electronics beats Spruce Power on 11 of the 14 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.