Kimball Electronics (NASDAQ: KE) and General Cable Corporation (NYSE:BGC) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

Kimball Electronics has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, General Cable Corporation has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kimball Electronics and General Cable Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball Electronics 0 0 1 0 3.00
General Cable Corporation 0 2 0 0 2.00

Kimball Electronics presently has a consensus target price of $17.00, suggesting a potential downside of 11.23%. Given Kimball Electronics’ stronger consensus rating and higher possible upside, research analysts clearly believe Kimball Electronics is more favorable than General Cable Corporation.

Insider and Institutional Ownership

56.9% of Kimball Electronics shares are held by institutional investors. Comparatively, 98.9% of General Cable Corporation shares are held by institutional investors. 3.2% of Kimball Electronics shares are held by company insiders. Comparatively, 1.8% of General Cable Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Kimball Electronics and General Cable Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball Electronics 3.67% 9.24% 5.74%
General Cable Corporation -4.80% 13.47% 1.10%

Dividends

General Cable Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Kimball Electronics does not pay a dividend. General Cable Corporation pays out -20.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Kimball Electronics and General Cable Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kimball Electronics $930.91 million 0.55 $62.96 million $1.24 15.44
General Cable Corporation $3.70 billion 0.24 $209.90 million ($3.57) -4.97

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

Kimball Electronics Company Profile

Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.

General Cable Corporation Company Profile

General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.

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