Analyzing Kimball Electronics (KE) and Hollysys Automation Technologies (HOLI)
Kimball Electronics (NASDAQ: KE) and Hollysys Automation Technologies (NASDAQ:HOLI) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Insider & Institutional Ownership
56.9% of Kimball Electronics shares are owned by institutional investors. Comparatively, 68.0% of Hollysys Automation Technologies shares are owned by institutional investors. 3.9% of Kimball Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Hollysys Automation Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Kimball Electronics does not pay a dividend. Hollysys Automation Technologies pays out 17.4% of its earnings in the form of a dividend.
Risk and Volatility
Kimball Electronics has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Hollysys Automation Technologies has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Valuation and Earnings
This table compares Kimball Electronics and Hollysys Automation Technologies’ 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||0.62||$62.96 million||$1.24||17.38|
|Hollysys Automation Technologies||$431.94 million||3.03||$80.86 million||$1.15||18.89|
Hollysys Automation Technologies has higher revenue, but lower earnings than Kimball Electronics. Kimball Electronics is trading at a lower price-to-earnings ratio than Hollysys Automation Technologies, indicating that it is currently the more affordable of the two stocks.
This table compares Kimball Electronics and Hollysys Automation Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hollysys Automation Technologies||15.96%||9.87%||6.74%|
This is a breakdown of current ratings and recommmendations for Kimball Electronics and Hollysys Automation Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hollysys Automation Technologies||1||1||2||0||2.25|
Kimball Electronics currently has a consensus target price of $17.00, indicating a potential downside of 21.11%. Hollysys Automation Technologies has a consensus target price of $19.65, indicating a potential downside of 9.52%. Given Hollysys Automation Technologies’ higher probable upside, analysts plainly believe Hollysys Automation Technologies is more favorable than Kimball Electronics.
Hollysys Automation Technologies beats Kimball Electronics on 10 of the 16 factors compared between 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.
Hollysys Automation Technologies Company Profile
Hollysys Automation Technologies Ltd. is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.
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