Methode Electronics (NYSE: MEI) and Bel Fuse (NASDAQ:BELFB) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitabiliy, valuation, analyst recommendations and risk.
Institutional & Insider Ownership
89.5% of Methode Electronics shares are held by institutional investors. Comparatively, 61.0% of Bel Fuse shares are held by institutional investors. 5.8% of Methode Electronics shares are held by company insiders. Comparatively, 8.8% of Bel Fuse shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Methode Electronics pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Methode Electronics pays out 14.6% of its earnings in the form of a dividend. Bel Fuse pays out 9.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bel Fuse is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Methode Electronics has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Methode Electronics and Bel Fuse, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Methode Electronics presently has a consensus price target of $46.75, indicating a potential upside of 14.72%. Bel Fuse has a consensus price target of $39.00, indicating a potential upside of 49.71%. Given Bel Fuse’s higher probable upside, analysts plainly believe Bel Fuse is more favorable than Methode Electronics.
This table compares Methode Electronics and Bel Fuse’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Methode Electronics and Bel Fuse’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Methode Electronics||$809.50 million||1.85||$138.80 million||$2.46||16.57|
|Bel Fuse||$492.64 million||0.64||$49.93 million||$3.03||8.60|
Methode Electronics has higher revenue and earnings than Bel Fuse. Bel Fuse is trading at a lower price-to-earnings ratio than Methode Electronics, indicating that it is currently the more affordable of the two stocks.
Methode Electronics beats Bel Fuse on 9 of the 16 factors compared between the two stocks.
Methode Electronics Company Profile
Methode Electronics, Inc. (Methode) is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers (OEMs). The Interface segment provides a range of copper and fiber-optic interface and interface solutions. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, such as PowerRail solution, high-current low voltage flexible power cabling systems and powder coated bus bars. The Other segment includes medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions.
Bel Fuse Company Profile
Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.
Receive News & Ratings for Methode Electronics Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Methode Electronics Inc. and related companies with MarketBeat.com's FREE daily email newsletter.