IEC Electronics Corp (NYSE: IEC) and NeoPhotonics Corporation (NYSE:NPTN) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
This table compares IEC Electronics Corp and NeoPhotonics Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IEC Electronics Corp||3.04%||24.24%||6.33%|
This is a summary of recent recommendations for IEC Electronics Corp and NeoPhotonics Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IEC Electronics Corp||0||1||2||0||2.67|
IEC Electronics Corp currently has a consensus target price of $5.10, suggesting a potential upside of 4.51%. NeoPhotonics Corporation has a consensus target price of $8.92, suggesting a potential upside of 83.85%. Given NeoPhotonics Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe NeoPhotonics Corporation is more favorable than IEC Electronics Corp.
Insider & Institutional Ownership
85.3% of NeoPhotonics Corporation shares are owned by institutional investors. 17.3% of NeoPhotonics Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares IEC Electronics Corp and NeoPhotonics Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IEC Electronics Corp||$97.25 million||0.52||$3.44 million||N/A||N/A|
|NeoPhotonics Corporation||$358.05 million||0.59||$338,000.00||($0.62)||-7.82|
IEC Electronics Corp has higher revenue, but lower earnings than NeoPhotonics Corporation.
NeoPhotonics Corporation beats IEC Electronics Corp on 8 of the 12 factors compared between the two stocks.
About IEC Electronics Corp
IEC Electronics Corp. provides electronic manufacturing services (EMS) to a range of technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with an array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. It offers its customers a range of manufacturing services, combined with scientific technical support to ensure their products perform for the critical applications they are intended for. Its products are distributed to and through original equipment manufacturers (OEMs). Its capabilities include design and test development, analysis and testing laboratory, custom functional test design and component risk mitigation.
About NeoPhotonics Corporation
NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.
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