Methode Electronics (NYSE: MEI) is one of 32 public companies in the “Electronic Component” industry, but how does it weigh in compared to its rivals? We will compare Methode Electronics to similar businesses based on the strength of its profitability, institutional ownership, dividends, valuation, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Methode Electronics and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Methode Electronics 0 0 3 0 3.00
Methode Electronics Competitors 42 257 465 6 2.56

Methode Electronics presently has a consensus target price of $48.33, suggesting a potential upside of 7.77%. As a group, “Electronic Component” companies have a potential downside of 7.86%. Given Methode Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Methode Electronics is more favorable than its rivals.

Dividends

Methode Electronics pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Methode Electronics pays out 14.6% of its earnings in the form of a dividend. As a group, “Electronic Component” companies pay a dividend yield of 2.2% and pay out 51.5% of their earnings in the form of a dividend.

Institutional and Insider Ownership

89.8% of Methode Electronics shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Electronic Component” companies are owned by institutional investors. 4.4% of Methode Electronics shares are owned by company insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Methode Electronics and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Methode Electronics $825.80 million $150.80 million 18.23
Methode Electronics Competitors $895.21 million $186.21 million 11.27

Methode Electronics’ rivals have higher revenue and earnings than Methode Electronics. Methode Electronics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Methode Electronics has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Methode Electronics’ rivals have a beta of 1.03, indicating that their average share price is 3% more volatile than the S&P 500.

Profitability

This table compares Methode Electronics and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Methode Electronics 10.19% 14.55% 11.06%
Methode Electronics Competitors 1.66% -2.49% 0.29%

Summary

Methode Electronics beats its rivals on 9 of the 15 factors compared.

Methode Electronics Company Profile

Methode Electronics, Inc. (Methode) is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers (OEMs). The Interface segment provides a range of copper and fiber-optic interface and interface solutions. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, such as PowerRail solution, high-current low voltage flexible power cabling systems and powder coated bus bars. The Other segment includes medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions.

Receive News & Stock Ratings for Methode Electronics Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Methode Electronics Inc. and related stocks with our FREE daily email newsletter.