Comparing Orion Energy Systems (NASDAQ:OESX) and Hubbell (NYSE:HUBB)

Hubbell (NYSE:HUBB) and Orion Energy Systems (NASDAQ:OESX) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

Hubbell has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Orion Energy Systems has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

88.2% of Hubbell shares are held by institutional investors. Comparatively, 52.6% of Orion Energy Systems shares are held by institutional investors. 0.6% of Hubbell shares are held by company insiders. Comparatively, 5.3% of Orion Energy Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hubbell and Orion Energy Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hubbell	$6.59 billion	3.57	$887.10 million	$17.06	26.14
Orion Energy Systems	$86.31 million	0.66	-$3.16 million	($0.08)	-173.25

Hubbell has higher revenue and earnings than Orion Energy Systems. Orion Energy Systems is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hubbell and Orion Energy Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hubbell	13.78%	27.33%	10.61%
Orion Energy Systems	-0.20%	10.23%	3.31%

Analyst Ratings

This is a summary of current ratings and price targets for Hubbell and Orion Energy Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hubbell	0	5	6	0	2.55
Orion Energy Systems	1	1	2	0	2.25

Hubbell currently has a consensus target price of $544.22, suggesting a potential upside of 22.04%. Orion Energy Systems has a consensus target price of $36.50, suggesting a potential upside of 163.35%. Given Orion Energy Systems’ higher possible upside, analysts plainly believe Orion Energy Systems is more favorable than Hubbell.

Summary

Hubbell beats Orion Energy Systems on 11 of the 14 factors compared between the two stocks.

About Hubbell

Hubbell Incorporated is a manufacturer of electrical and utility products serving customers in the energy, industrial, commercial and residential markets. Its products help support the generation, transmission and distribution of electricity, as well as the installation and use of electrical systems. The company’s Utility Solutions business makes products such as connectors, insulators, arresters and other equipment used in electric utility networks. Its Electrical Solutions business supplies wiring devices, lighting and controls, enclosures and related products for buildings and industrial applications.

About Orion Energy Systems

Orion Energy Systems, Inc. (NASDAQ: OESX) is an energy-efficiency technology company that designs, manufactures and delivers lighting and energy-management solutions for commercial and industrial facilities. Its offerings are intended to help organizations improve illumination, reduce energy consumption and modernize building operations. The company’s products and services include LED lighting fixtures and retrofit systems, intelligent lighting controls, and related energy-management technologies.