Contrasting TCP International Holdings (TCPI) and Orion Energy Systems (OESX)

Orion Energy Systems (NASDAQ: OESX) and TCP International Holdings (NYSE:TCPI) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitabiliy and dividends.

Institutional and Insider Ownership

45.1% of Orion Energy Systems shares are owned by institutional investors. Comparatively, 4.3% of TCP International Holdings shares are owned by institutional investors. 10.5% of Orion Energy Systems shares are owned by insiders. Comparatively, 74.6% of TCP International Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Orion Energy Systems and TCP International Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Energy Systems 0 2 2 0 2.50
TCP International Holdings 0 0 0 0 N/A

Orion Energy Systems currently has a consensus target price of $1.83, suggesting a potential upside of 36.82%. TCP International Holdings has a consensus target price of $1.00, suggesting a potential downside of 41.18%. Given Orion Energy Systems’ higher probable upside, equities analysts plainly believe Orion Energy Systems is more favorable than TCP International Holdings.

Volatility and Risk

Orion Energy Systems has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, TCP International Holdings has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares Orion Energy Systems and TCP International Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Orion Energy Systems $70.21 million 0.54 -$9.94 million ($0.44) -3.05
TCP International Holdings N/A N/A N/A N/A N/A

TCP International Holdings has higher revenue, but lower earnings than Orion Energy Systems.

Profitability

This table compares Orion Energy Systems and TCP International Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Energy Systems -17.50% -29.91% -18.57%
TCP International Holdings -1.52% -7.73% -1.79%

Summary

Orion Energy Systems beats TCP International Holdings on 5 of the 9 factors compared between the two stocks.

About Orion Energy Systems

Orion Energy Systems, Inc. is a designer and manufacturer of lighting platforms. The Company researches, develops, designs, manufactures, markets, sells and implements energy management systems consisting primarily of commercial and industrial interior and exterior lighting systems, and related services. The Company operates through three segments: Orion U.S. Markets Division (USM), Orion Engineered Systems Division (OES) and Distribution Services Division (ODS). The USM division develops and sells its commercial lighting systems and energy management systems to the wholesale contractor markets. The OES division develops and sells lighting products, and provides construction and engineering services for its commercial light emitting diode (LED) and high intensity fluorescent (HIF) lighting and energy management systems. The ODS division focuses on selling its lighting products through manufacturer representative agencies and a network of broadline North American distributors.

About TCP International Holdings

TCP International Holdings Ltd. is a provider of light-emitting diode (LED) and compact fluorescent lamp (CFL) lighting technologies. The Company designs, develops, manufactures and delivers lamps, fixtures and Internet-based lighting control solutions. Its portfolio of LED and CFLs, fixtures and Internet-based lighting solutions are offered through retail and consumer and industrial distributors throughout the United States, Canada, Asia, Latin America and Europe/Middle East/Africa (EMEA). The Company offers industrial warehouse lighting and commercial lighting systems, which include Commercial & Industrial Light Bulbs, Commercial & Industrial Light Fixtures, and Emergency Exit Signs for Lighting. Its Commercial & Industrial Light Bulbs include LED A Lamps, LED T8 Tubes, LED BR Lamps, Dimmable LED Downlights, LED MR16 Lights, LED Deco Lights, Non-Dimmable LED PAR Lamps, Dimmable LED PAR Lamps, Fluorescent Lamps & Ballasts, CFL Light Bulbs, Halogen Lamps and LED Elevator Lamps.

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