Thermon Group (NYSE:THR) vs. Sensata Technologies (NYSE:ST) Critical Survey

Sensata Technologies (NYSE:ST) and Thermon Group (NYSE:THR) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility & Risk

Sensata Technologies has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Thermon Group has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sensata Technologies and Thermon Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	6	5	0	2.33
Thermon Group	0	0	0	0	0.00

Sensata Technologies currently has a consensus price target of $34.08, indicating a potential upside of 17.98%. Given Sensata Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Sensata Technologies is more favorable than Thermon Group.

Valuation and Earnings

This table compares Sensata Technologies and Thermon Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensata Technologies	$3.93 billion	1.07	$128.48 million	$0.81	35.67
Thermon Group	$498.21 million	1.82	$53.51 million	$1.57	17.40

Sensata Technologies has higher revenue and earnings than Thermon Group. Thermon Group is trading at a lower price-to-earnings ratio than Sensata Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.4% of Sensata Technologies shares are held by institutional investors. Comparatively, 99.8% of Thermon Group shares are held by institutional investors. 0.9% of Sensata Technologies shares are held by company insiders. Comparatively, 2.5% of Thermon Group shares are held 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.

Profitability

This table compares Sensata Technologies and Thermon Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensata Technologies	3.19%	17.12%	6.72%
Thermon Group	10.74%	13.08%	8.40%

Summary

Sensata Technologies beats Thermon Group on 8 of the 14 factors compared between the two stocks.

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.

About Thermon Group

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It offers heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services. The company also provides controls, monitoring, and software systems for the control and management of a heat trace system; environmental heating solutions under the Ruffneck, Norsemen, and Catadyne brands; process heating solutions under the Caloritech brand name; filtration solutions under the 3L Filters brand; rail and transit solutions under the Hellfire, Velocity, ArcticSense, and other brand names; and boilers under the Vapor Power, Precision Boilers, and Caloritech brands. In addition, it offers project services; transportation heating products, including track and switch heaters, accessories, control panels, rail heaters, gas blower accessories, and air curtains; transit heaters; and velocity heat products. Further, the company offers temporary power solutions; heating systems, such as engineered electric heat, explosion proof gas catalytic heaters, heaters for harshest environments, methane abatement, and engineered filtration system; electrically, steam, and fluid heated tubing bundles; and pre-insulated tubing and system accessories tubing bundles. It serves chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, energy transition/decarbonization, mining and mineral processing, maritime/shipbuilding, semiconductors, pharmaceutical and biotechnology, food and beverage, data centers, and renewables industries through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is headquartered in Austin, Texas.