Financial Review: Latch (NASDAQ:LTCH) and Benchmark Electronics (NYSE:BHE)

Benchmark Electronics (NYSE:BHE) and Latch (NASDAQ:LTCH) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Insider & Institutional Ownership

92.3% of Benchmark Electronics shares are owned by institutional investors. Comparatively, 0.4% of Latch shares are owned by institutional investors. 1.1% of Benchmark Electronics shares are owned by insiders. Comparatively, 21.9% of Latch shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Benchmark Electronics and Latch, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benchmark Electronics	0	0	3	0	3.00
Latch	0	0	0	0	0.00

Benchmark Electronics currently has a consensus price target of $91.00, indicating a potential upside of 10.84%. Given Benchmark Electronics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Benchmark Electronics is more favorable than Latch.

Profitability

This table compares Benchmark Electronics and Latch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benchmark Electronics	1.89%	7.28%	3.81%
Latch	N/A	N/A	N/A

Volatility & Risk

Benchmark Electronics has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Latch has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares Benchmark Electronics and Latch”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Electronics	$2.66 billion	1.11	$24.85 million	$1.47	55.85
Latch	$48.39 million	0.65	-$162.34 million	($0.31)	-0.61

Benchmark Electronics has higher revenue and earnings than Latch. Latch is trading at a lower price-to-earnings ratio than Benchmark Electronics, indicating that it is currently the more affordable of the two stocks.

Summary

Benchmark Electronics beats Latch on 12 of the 13 factors compared between the two stocks.

About Benchmark Electronics

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also offers electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company provides precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.

About Latch

Latch, Inc. operates as an enterprise technology company in the United States and Canada. The company offers LatchOS, an operating system that extends smart access, delivery and guest management, smart home and sensors, connectivity, and personalization and services. Its software products include Latch Resident Mobile Applications, Latch Manager Web, and the Latch Manager Mobile Applications. The company also offers hardware devices that include M, C, and R series door-mounted access control products; Latch Intercom, which integrates into the Latch core access systems and allows audio and video calls for remote unlocking; Latch Camera, a dome camera; Latch Hub, a connectivity solution that enables smart access, smart home, and sensor devices at various buildings; and Latch Leak Detector, a solution to enable leak prevention, detection, and resolution for building owners and residents. In addition, it provides NFC unlock on Android that allows the user to unlock their door without even opening their phone; Latch Visitor Express, a contactless visitor entry system; and LatchID, an identification system. The company is headquartered in New York, New York.