Critical Analysis: AVX Corporation (AVX) vs. Its Peers

AVX Corporation (NYSE: AVX) is one of 32 public companies in the “Electronic Component” industry, but how does it weigh in compared to its peers? We will compare AVX Corporation to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Volatility & Risk

AVX Corporation has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, AVX Corporation’s peers have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

24.4% of AVX Corporation shares are held by institutional investors. Comparatively, 56.3% of shares of all “Electronic Component” companies are held by institutional investors. 0.5% of AVX Corporation shares are held by company insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies 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.

Dividends

AVX Corporation pays an annual dividend of $0.44 per share and has a dividend yield of 2.6%. AVX Corporation pays out 58.7% of its earnings in the form of a dividend. As a group, “Electronic Component” companies pay a dividend yield of 2.5% and pay out 51.8% of their earnings in the form of a dividend. AVX Corporation has raised its dividend for 4 consecutive years.

Profitability

This table compares AVX Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AVX Corporation 9.46% 5.69% 5.10%
AVX Corporation Competitors 1.94% -2.09% 0.57%

Analyst Ratings

This is a summary of recent ratings and recommmendations for AVX Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVX Corporation 0 2 0 0 2.00
AVX Corporation Competitors 98 348 502 6 2.44

AVX Corporation presently has a consensus price target of $16.75, indicating a potential downside of 2.67%. As a group, “Electronic Component” companies have a potential downside of 0.87%. Given AVX Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe AVX Corporation has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares AVX Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AVX Corporation $1.33 billion $249.57 million 22.95
AVX Corporation Competitors $894.84 million $186.22 million 10.26

AVX Corporation has higher revenue and earnings than its peers. AVX Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

AVX Corporation peers beat AVX Corporation on 8 of the 15 factors compared.

About AVX Corporation

AVX Corporation (AVX) is a manufacturer and supplier and reseller of a line of passive electronic components, interconnect devices and related products. AVX operates in three segments: Passive Components, Kyocera Electronic Devices (KED Resale) and Interconnect. The Passive Components segment consists of surface mount and leaded ceramic capacitors, surface mount and leaded tantalum capacitors, surface mount and leaded film capacitors, thick and thin film packages of multiple passive integrated components, thermistors, inductors and resistive products. The KED Resale segment consists of ceramic capacitors, frequency control devices, surface acoustic wave (SAW) devices, sensor products, radio frequency (RF) modules, actuators, acoustic devices and connectors produced by Kyocera and resold by AVX. The Interconnect segment consists primarily of AVX Interconnect automotive, telecom and memory connectors manufactured by AVX Interconnect or purchased from other manufacturers for resale.

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