Avnet (NYSE: AVT) and API Technologies Corp (NASDAQ:ATNY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, valuation, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Avnet and API Technologies Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avnet $26.28 billion 0.18 $990.42 million $4.17 9.09
API Technologies Corp N/A N/A N/A N/A N/A

Avnet has higher revenue and earnings than API Technologies Corp.

Institutional and Insider Ownership

98.7% of Avnet shares are held by institutional investors. 1.5% of Avnet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Avnet and API Technologies Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avnet 2.83% 9.24% 3.93%
API Technologies Corp -11.81% -30.24% -7.58%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Avnet and API Technologies Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avnet 4 5 0 1 1.80
API Technologies Corp 0 0 0 0 N/A

Avnet presently has a consensus price target of $41.29, indicating a potential upside of 8.90%. Given Avnet’s higher probable upside, equities analysts plainly believe Avnet is more favorable than API Technologies Corp.

Dividends

Avnet pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. API Technologies Corp does not pay a dividend. Avnet pays out 17.3% of its earnings in the form of a dividend. API Technologies Corp has increased its dividend for 3 consecutive years.

Summary

Avnet beats API Technologies Corp on 9 of the 11 factors compared between the two stocks.

About Avnet

Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other services.

About API Technologies Corp

API Technologies Corp. (API) is engaged in providing radio frequency (RF) microwave, microelectronic, power and security solutions. The Company offers a range of RF, microwave, millimeter wave and microelectronics products ranging from components to complete system solutions. The Company operates through three segments. The Systems, Subsystems & Components (SSC) segment’s products include RF, microwave and millimeter wave products; microcircuits and microelectronics; electromagnetic integrated solutions, and power solutions. The Electronic Manufacturing Services segment offers electronics manufacturing services (EMS) for defense, commercial and medical customers. The Secure Systems & Information Assurance (SSIA) segment develops and offers various secure network and hardware solutions, including TEMPEST and Emanation Security, ruggedized systems, secure access, information assurance products, as well as TEMPEST certification.

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