II-VI (NASDAQ: IIVI) and CUI Global (NASDAQ:CUI) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

78.5% of II-VI shares are held by institutional investors. Comparatively, 63.1% of CUI Global shares are held by institutional investors. 6.8% of II-VI shares are held by company insiders. Comparatively, 4.7% of CUI Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares II-VI and CUI Global’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
II-VI $972.05 million 2.48 $179.18 million $1.48 25.78
CUI Global $83.00 million 0.92 -$6.25 million ($0.39) -9.31

II-VI has higher revenue and earnings than CUI Global. CUI Global is trading at a lower price-to-earnings ratio than II-VI, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

II-VI has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, CUI Global has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Profitability

This table compares II-VI and CUI Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
II-VI 9.80% 12.94% 8.16%
CUI Global -10.29% -16.61% -9.84%

Analyst Ratings

This is a summary of current ratings and recommmendations for II-VI and CUI Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
II-VI 0 1 4 0 2.80
CUI Global 0 0 3 0 3.00

II-VI currently has a consensus price target of $44.70, suggesting a potential upside of 17.17%. CUI Global has a consensus price target of $9.00, suggesting a potential upside of 147.93%. Given CUI Global’s stronger consensus rating and higher probable upside, analysts plainly believe CUI Global is more favorable than II-VI.

Summary

II-VI beats CUI Global on 10 of the 13 factors compared between the two stocks.

About II-VI

II-VI Incorporated develops and manufactures engineered materials, optoelectronic components and products. The Company has three segments: II-VI Laser Solutions, II-VI Photonics and II-VI Performance Products. The II-VI Laser Solutions segment designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used in carbon dioxide (CO2) lasers, fiber-delivered beam delivery systems and processing tools and direct diode lasers for industrial lasers sold under the II-VI HIGHYAG and II-VI Laser Enterprise brand names. The II-VI Photonics segment manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other consumer and commercial applications. The II-VI Performance Products segment designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications.

About CUI Global

CUI Global, Inc. is a platform company. The Company’s segments include Power and Electromechanical, Energy and Other. The Power and Electromechanical segment includes its subsidiaries, CUI, Inc. (CUI), CUI Japan and CUI-Canada, Inc., which provide electromechanical components, including power supplies, transformers, converters, connectors and industrial controls for original equipment manufacturers (OEMs). Its Power and Electro-Mechanical segment aggregates its product offerings into over two categories: components, including connectors, speakers, buzzers, test and measurement devices, and control solutions, including encoders and sensors, and power solutions. Its Energy segment includes its subsidiaries, Orbital Gas Systems Limited (Orbital) and the Orbital Gas Systems, North America, Inc., which consist of gas related test and measurement systems, including the GasPT, a natural gas inferential metering device. The Other segment includes corporate activity.

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