Revolution Lighting Technologies (NASDAQ: RVLT) and Preformed Line Products (NASDAQ:PLPC) are both small-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Earnings & Valuation

This table compares Revolution Lighting Technologies and Preformed Line Products’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Revolution Lighting Technologies $172.10 million 0.47 -$520,000.00 ($0.31) -12.35
Preformed Line Products $336.63 million 0.95 $15.25 million $3.33 18.90

Preformed Line Products has higher revenue and earnings than Revolution Lighting Technologies. Revolution Lighting Technologies is trading at a lower price-to-earnings ratio than Preformed Line Products, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

36.3% of Revolution Lighting Technologies shares are held by institutional investors. Comparatively, 44.7% of Preformed Line Products shares are held by institutional investors. 42.0% of Revolution Lighting Technologies shares are held by company insiders. Comparatively, 37.7% of Preformed Line Products shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Revolution Lighting Technologies has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Revolution Lighting Technologies and Preformed Line Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Revolution Lighting Technologies -3.94% -2.39% -1.36%
Preformed Line Products 4.64% 7.30% 4.85%

Dividends

Preformed Line Products pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Revolution Lighting Technologies does not pay a dividend. Preformed Line Products pays out 24.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Revolution Lighting Technologies and Preformed Line Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Revolution Lighting Technologies 0 0 2 0 3.00
Preformed Line Products 0 0 0 0 N/A

Revolution Lighting Technologies presently has a consensus price target of $6.50, suggesting a potential upside of 69.71%. Given Revolution Lighting Technologies’ higher possible upside, analysts clearly believe Revolution Lighting Technologies is more favorable than Preformed Line Products.

Summary

Preformed Line Products beats Revolution Lighting Technologies on 10 of the 15 factors compared between the two stocks.

About Revolution Lighting Technologies

Revolution Lighting Technologies, Inc. designs, manufactures, markets and sells commercial grade light-emitting diode (LED) and conventional lighting fixtures. The Company operates in Lighting Products and Solutions (principally LED fixtures and lamps) segment. The Company’s products are used for outdoor and indoor applications, LED-based signage, channel-letter and contour lighting products, LED replacement lamps and commercial grade smart grid control systems. It sells its LED products under the RVLT, Seesmart, Lumificient, Value Lighting, Array and CMG brand names. The Company’s commercial lamps and fixtures products include the commercial indoor and outdoor lighting products, such as linear tube lighting, multi-family lighting, commercial troffer lighting and street lighting. It caters to municipal and commercial markets, which include industrial, hospitality, institutional, educational, healthcare and signage markets in the United States, Canada and internationally.

About Preformed Line Products

Preformed Line Products Company (PLPC) is a designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators and information industries. The Company’s products include Formed Wire and Related Hardware Products, Protective Closures, Plastic Products and Other Products. The Company operates through four segments: PLP-USA (including corporate), The Americas (includes operations in North and South America without PLP-USA), EMEA (Europe, Middle East and Africa) and Asia-Pacific. The Company’s PLP-USA segment consists of its United States operations manufacturing its traditional products primarily supporting its domestic energy, telecommunications and solar products. Its other three segments, The Americas, EMEA and Asia-Pacific, support its energy, telecommunications, data communication and solar products in each respective geographical region.

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