Head-To-Head Analysis: Corning (NYSE:GLW) & Benchmark Electronics (NYSE:BHE)

Corning (NYSE:GLW) and Benchmark Electronics (NYSE:BHE) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

Corning has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Profitability

This table compares Corning and Benchmark Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corning	12.13%	20.83%	8.39%
Benchmark Electronics	1.90%	7.71%	3.94%

Insider and Institutional Ownership

69.8% of Corning shares are owned by institutional investors. Comparatively, 92.3% of Benchmark Electronics shares are owned by institutional investors. 0.3% of Corning shares are owned by insiders. Comparatively, 1.1% of Benchmark Electronics shares 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.

Dividends

Corning pays an annual dividend of $1.12 per share and has a dividend yield of 1.1%. Benchmark Electronics pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Corning pays out 45.3% of its earnings in the form of a dividend. Benchmark Electronics pays out 43.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Benchmark Electronics has raised its dividend for 1 consecutive years. Benchmark Electronics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Corning and Benchmark Electronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corning	$15.63 billion	5.84	$1.60 billion	$2.47	42.93
Benchmark Electronics	$2.95 billion	0.73	$24.85 million	$1.55	38.96

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

Analyst Ratings

This is a summary of current ratings and price targets for Corning and Benchmark Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corning	0	5	14	1	2.80
Benchmark Electronics	0	2	2	0	2.50

Corning presently has a consensus price target of $175.81, indicating a potential upside of 65.81%. Benchmark Electronics has a consensus price target of $88.50, indicating a potential upside of 46.55%. Given Corning’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Corning is more favorable than Benchmark Electronics.

Summary

Corning beats Benchmark Electronics on 12 of the 18 factors compared between the two stocks.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.

About Benchmark Electronics

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also offers electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company provides precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.