SMART Technologies (NASDAQ: SMT) and Knowles Corporation (NYSE:KN) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares SMART Technologies and Knowles Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SMART Technologies -9.52% N/A -17.44%
Knowles Corporation -2.44% 6.98% 4.62%

Analyst Ratings

This is a breakdown of current recommendations for SMART Technologies and Knowles Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SMART Technologies 0 0 0 0 N/A
Knowles Corporation 0 1 3 0 2.75

Knowles Corporation has a consensus target price of $18.50, indicating a potential upside of 27.76%. Given Knowles Corporation’s higher probable upside, analysts clearly believe Knowles Corporation is more favorable than SMART Technologies.

Valuation and Earnings

This table compares SMART Technologies and Knowles Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SMART Technologies N/A N/A N/A ($5.46) -0.82
Knowles Corporation $867.60 million 1.49 $141.10 million ($0.23) -62.95

Knowles Corporation has higher revenue and earnings than SMART Technologies. Knowles Corporation is trading at a lower price-to-earnings ratio than SMART Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

11.7% of SMART Technologies shares are owned by institutional investors. 2.2% of Knowles Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SMART Technologies has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Summary

Knowles Corporation beats SMART Technologies on 8 of the 10 factors compared between the two stocks.

SMART Technologies Company Profile

SMART Technologies Inc. (SMART) is a provider of technology solutions. SMART solutions include large-format displays, collaboration software and services that enable teaching, learning and work experiences in schools and workplaces. Its hardware and software products for the education market include SMART Board interactive flat panels, SMART kapp digital capture board, SMART Board interactive whiteboards, SMART Learning Suite Software, SMART Notebook collaborative learning software, SMART lab, SMART response 2, SMART amp collaborative learning software and SMART Exchange. It offers a range of visual collaboration solutions, consisting of software combined with touch-sensitive interactive displays and remote conferencing capabilities. Its hardware and software products for the enterprise market include SMART kapp iQ and SMART kapp iQ Pro, kapp digital capture board, SMART Room System for Microsoft Skype for Business, SMART Meeting Pro software and Bridgit conferencing software.

Knowles Corporation Company Profile

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

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