KEMET (KEM) & Hubbell (HUBB) Critical Comparison
KEMET (NYSE: KEM) and Hubbell (NYSE:HUBB) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Risk & Volatility
KEMET has a beta of 3.75, meaning that its stock price is 275% more volatile than the S&P 500. Comparatively, Hubbell has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
71.7% of KEMET shares are owned by institutional investors. Comparatively, 85.7% of Hubbell shares are owned by institutional investors. 3.9% of KEMET shares are owned by insiders. Comparatively, 0.7% of Hubbell shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Hubbell pays an annual dividend of $3.08 per share and has a dividend yield of 2.7%. KEMET does not pay a dividend. Hubbell pays out 51.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for KEMET and Hubbell, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KEMET presently has a consensus price target of $18.38, suggesting a potential downside of 24.91%. Hubbell has a consensus price target of $141.20, suggesting a potential upside of 25.39%. Given Hubbell’s stronger consensus rating and higher possible upside, analysts clearly believe Hubbell is more favorable than KEMET.
Earnings & Valuation
This table compares KEMET and Hubbell’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KEMET||$1.20 billion||1.16||$254.52 million||$1.62||15.10|
|Hubbell||$3.67 billion||1.68||$243.10 million||$5.93||18.99|
KEMET has higher earnings, but lower revenue than Hubbell. KEMET is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
This table compares KEMET and Hubbell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hubbell beats KEMET on 10 of the 16 factors compared between the two stocks.
KEMET Company Profile
KEMET Corporation, together with its subsidiaries, manufactures and sells passive electronic components under the KEMET brand worldwide and the TOKIN brand in Japan and Korea. The company operates through three segments: Solid Capacitors; Film and Electrolytics; and Electro-magnetic, Sensors & Actuators. It offers tantalum, aluminum polymer, and ceramic capacitors; film, paper, and electrolytic capacitors; and electro magnetically compatible materials and components, piezo materials and actuators, and various types of sensors. The company offers its products to various industries, including automotive, communications, computer-related, industrial, consumer, military/aerospace/marine, medical, and alternative energy industries. KEMET Corporation sells its products to original equipment manufacturers, electronics manufacturing services providers, and electronics distributors. The company was founded in 1919 and is headquartered in Simpsonville, South Carolina.
Hubbell Company Profile
Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical and Power. The Electrical segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various high voltage test and measurement equipment, industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product oriented Internet sites; special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers; and high voltage products directly to its customers through sales engineers. The Power segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms, and civil construction and transportation industries. Hubbell Incorporated was founded in 1888 and is headquartered in Shelton, Connecticut.
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