Electronics for Imaging (EFII) and Lexmark International (LXK) Critical Analysis
Electronics for Imaging (NASDAQ: EFII) and Lexmark International (NYSE:LXK) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Lexmark International pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Electronics for Imaging does not pay a dividend. Lexmark International pays out -133.3% of its earnings in the form of a dividend. Lexmark International has raised its dividend for 6 consecutive years.
Valuation and Earnings
This table compares Electronics for Imaging and Lexmark International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Electronics for Imaging||$988.02 million||1.94||$121.81 million||$0.98||42.30|
Electronics for Imaging has higher revenue and earnings than Lexmark International. Lexmark International is trading at a lower price-to-earnings ratio than Electronics for Imaging, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Electronics for Imaging has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Lexmark International has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
Insider & Institutional Ownership
81.8% of Lexmark International shares are owned by institutional investors. 1.9% of Electronics for Imaging shares are owned by insiders. Comparatively, 2.8% of Lexmark International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Electronics for Imaging and Lexmark International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electronics for Imaging||1||2||10||0||2.69|
Electronics for Imaging currently has a consensus target price of $51.00, indicating a potential upside of 23.04%. Given Electronics for Imaging’s higher probable upside, equities research analysts plainly believe Electronics for Imaging is more favorable than Lexmark International.
This table compares Electronics for Imaging and Lexmark International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electronics for Imaging||4.70%||5.58%||3.07%|
Lexmark International beats Electronics for Imaging on 7 of the 13 factors compared between the two stocks.
Electronics for Imaging Company Profile
Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.
Lexmark International Company Profile
Lexmark International, Inc. is a United States-based company, which is a provider of printing and imaging products, software, solutions and services. The Company’s software scans everything from spreadsheets to medical images, and provides services to banking, healthcare, insurance and retail companies. It creates enterprise software, hardware and services that remove inefficiencies of information silos and disconnected processes. It offers various services, such as managed print services, hardware warranty and repair service, professional services and enterprise software services. It offers solutions, such as financial process automation, business process management, Web information integration and consumer loan origination. Its hardware category includes equipment collection program, and Smart multifunction product (MFP) includes device management and mobile print solutions. It produces and distributes millions of supplies each year, including ink, toner and paper.
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