IEH (OTCMKTS:IEHC) and Methode Electronics (NYSE:MEI) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Earnings and Valuation
This table compares IEH and Methode Electronics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IEH||$23.47 million||1.25||$2.56 million||N/A||N/A|
|Methode Electronics||$908.30 million||1.23||$57.20 million||$3.00||10.09|
This table compares IEH and Methode Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
4.1% of IEH shares are owned by institutional investors. Comparatively, 94.1% of Methode Electronics shares are owned by institutional investors. 48.0% of IEH shares are owned by company insiders. Comparatively, 3.4% of Methode Electronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Methode Electronics pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. IEH does not pay a dividend. Methode Electronics pays out 14.7% of its earnings in the form of a dividend.
Risk & Volatility
IEH has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Methode Electronics has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for IEH and Methode Electronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Methode Electronics has a consensus target price of $50.00, suggesting a potential upside of 65.18%. Given Methode Electronics’ higher possible upside, analysts plainly believe Methode Electronics is more favorable than IEH.
Methode Electronics beats IEH on 8 of the 14 factors compared between the two stocks.
IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications. Its products include are used as basic components of larger assemblies of finished goods. The company markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to government, military, aerospace, medical, automotive, industrial, test equipment, and commercial electronic markets. It markets its products in the United States, Canada, Israel, India, various Pacific Rim countries, South Korea, and the European Union. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1937 and is based in Brooklyn, New York.
About Methode Electronics
Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. The company operates through four segments: Automotive, Interface, Power Products, and Other. The Automotive segment offers electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers. Its products include integrated center consoles, hidden switches, ergonomic switches, transmission lead frames, and light-emitting diode based lighting sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Interface segment provides various copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunication markets. Its solutions consist of conductive polymers, industrial safety radio remote controls, optical and copper transceivers, and solid-state field-effect consumer touch panels; and services include the design and installation of fiber optic and copper infrastructure systems, and manufacturing active and passive optical components. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus bars and devices, custom power-product assemblies, high-current low voltage flexible power cabling systems, and powder coated bus bars that are used in aerospace, computer, industrial and power conversion, military, telecommunication, and transportation markets and applications. The Other segment offers medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions. Methode Electronics, Inc. was founded in 1946 and is headquartered in Chicago, Illinois.
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