Critical Review: Espey Mfg. & Electronics (NYSEAMERICAN:ESP) and Linkers Industries (NASDAQ:LNKS)

Espey Mfg. & Electronics (NYSEAMERICAN:ESP) and Linkers Industries (NASDAQ:LNKS) are both small-cap aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Volatility & Risk

Espey Mfg. & Electronics has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Linkers Industries has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.

Earnings and Valuation

This table compares Espey Mfg. & Electronics and Linkers Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Espey Mfg. & Electronics	$43.95 million	3.91	$8.14 million	$2.45	23.67
Linkers Industries	$5.33 million	2.49	-$1.17 million	N/A	N/A

Espey Mfg. & Electronics has higher revenue and earnings than Linkers Industries.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Espey Mfg. & Electronics and Linkers Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Espey Mfg. & Electronics	0	0	0	1	4.00
Linkers Industries	1	0	0	0	1.00

Profitability

This table compares Espey Mfg. & Electronics and Linkers Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Espey Mfg. & Electronics	23.37%	19.09%	11.94%
Linkers Industries	N/A	N/A	N/A

Insider and Institutional Ownership

36.7% of Espey Mfg. & Electronics shares are held by institutional investors. 5.5% of Espey Mfg. & Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Espey Mfg. & Electronics beats Linkers Industries on 10 of the 11 factors compared between the two stocks.

About Espey Mfg. & Electronics

Espey Manufacturing & Electronics Corp. is a power electronics design and original equipment manufacturing company, which engages in developing and delivering products for use in military and severe environment applications. Its products include power supplies, converters, transformers, filters, magnetic components, power distribution equipment, uninterruptible power supply (UPS) systems, and antennas. The company was founded in 1928 and is headquartered in Saratoga Springs, NY.

About Linkers Industries

Linkers Industries Ltd. is a holding company, which engages in the business of manufacturing, supplying, and selling connectors, assemblies, wire, and cable harnesses. It operates through the following geographical segments: Thailand, Malaysia, Switzerland, the United States of America, and Others. The company was founded on December 8, 2022 and is headquartered in Sungai Petani, Malaysia.