SemiLEDS Corporation (NASDAQ: LEDS) and IEC Electronics Corp (NYSE:IEC) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation and Earnings

This table compares SemiLEDS Corporation and IEC Electronics Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SemiLEDS Corporation $8.53 million 0.89 -$4.18 million ($5.04) -0.43
IEC Electronics Corp $97.25 million 0.45 $3.44 million N/A N/A

IEC Electronics Corp has higher revenue and earnings than SemiLEDS Corporation.

Insider & Institutional Ownership

2.6% of SemiLEDS Corporation shares are held by institutional investors. 40.1% of SemiLEDS Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SemiLEDS Corporation and IEC Electronics Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SemiLEDS Corporation 0 0 0 0 N/A
IEC Electronics Corp 0 1 2 0 2.67

IEC Electronics Corp has a consensus price target of $5.10, indicating a potential upside of 19.16%. Given IEC Electronics Corp’s higher possible upside, analysts plainly believe IEC Electronics Corp is more favorable than SemiLEDS Corporation.

Profitability

This table compares SemiLEDS Corporation and IEC Electronics Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SemiLEDS Corporation -182.84% -59.70% -30.13%
IEC Electronics Corp -2.88% -19.12% -5.24%

Summary

IEC Electronics Corp beats SemiLEDS Corporation on 7 of the 10 factors compared between the two stocks.

SemiLEDS Corporation Company Profile

SemiLEDs Corporation develops, manufactures and sells light emitting diode (LED) chips and LED components. The Company’s products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. Its LED chips may also be used in specialty industrial applications, such as ultraviolet (UV), curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The Company produces a range of blue, white, green and UV LED chips, including its Enhanced Vertical (EV) LED product series, ranging from chip sizes of approximately 380 microns (um) by 380um to 1,520um by 1,520um. It designs, assembles and sells lighting fixtures and systems for general lighting applications, including commercial, residential and industrial lighting. Its lighting products consist primarily of LED luminaries and LED retrofits.

IEC Electronics Corp Company Profile

IEC Electronics Corp. provides electronic manufacturing services (EMS) to a range of technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with an array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. It offers its customers a range of manufacturing services, combined with scientific technical support to ensure their products perform for the critical applications they are intended for. Its products are distributed to and through original equipment manufacturers (OEMs). Its capabilities include design and test development, analysis and testing laboratory, custom functional test design and component risk mitigation.

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