Financial Analysis: Gauzy (NASDAQ:GAUZ) & Bel Fuse (NASDAQ:BELFA)

Gauzy (NASDAQ:GAUZ) and Bel Fuse (NASDAQ:BELFA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

6.0% of Bel Fuse shares are held by institutional investors. 4.8% of Bel Fuse shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Gauzy has a beta of -1.38, meaning that its stock price is 238% less volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Gauzy and Bel Fuse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gauzy	N/A	N/A	N/A
Bel Fuse	9.11%	21.78%	9.42%

Valuation & Earnings

This table compares Gauzy and Bel Fuse”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gauzy	$103.53 million	0.13	-$53.18 million	($2.05)	-0.34
Bel Fuse	$675.46 million	4.40	$61.54 million	$4.65	50.46

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

Analyst Ratings

This is a summary of recent ratings and target prices for Gauzy and Bel Fuse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gauzy	1	0	2	0	2.33
Bel Fuse	0	1	0	1	3.00

Gauzy currently has a consensus price target of $11.50, indicating a potential upside of 1,564.25%. Bel Fuse has a consensus price target of $250.00, indicating a potential upside of 6.56%. Given Gauzy’s higher possible upside, equities analysts plainly believe Gauzy is more favorable than Bel Fuse.

Summary

Bel Fuse beats Gauzy on 13 of the 15 factors compared between the two stocks.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.