Methode Electronics (NYSE: MEI) is one of 32 publicly-traded companies in the “Electronic Component” industry, but how does it weigh in compared to its rivals? We will compare Methode Electronics to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, analyst recommendations and dividends.
Insider & Institutional Ownership
89.8% of Methode Electronics shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Electronic Component” companies are owned by institutional investors. 4.4% of Methode Electronics shares are owned by company insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Methode Electronics has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Methode Electronics’ rivals have a beta of 1.03, meaning that their average stock price is 3% more volatile than the S&P 500.
Valuation and Earnings
This table compares Methode Electronics and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Methode Electronics||$825.80 million||$150.80 million||18.13|
|Methode Electronics Competitors||$894.66 million||$186.07 million||11.35|
Methode Electronics’ rivals have higher revenue and earnings than Methode Electronics. Methode Electronics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent recommendations and price targets for Methode Electronics and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Methode Electronics Competitors||42||258||467||6||2.57|
Methode Electronics currently has a consensus price target of $48.33, suggesting a potential upside of 8.37%. As a group, “Electronic Component” companies have a potential downside of 10.47%. Given Methode Electronics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Methode Electronics is more favorable than its rivals.
Methode Electronics pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Methode Electronics pays out 14.6% of its earnings in the form of a dividend. As a group, “Electronic Component” companies pay a dividend yield of 2.2% and pay out 51.5% of their earnings in the form of a dividend.
This table compares Methode Electronics and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Methode Electronics Competitors||1.90%||-2.19%||0.48%|
Methode Electronics beats its rivals on 9 of the 15 factors compared.
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.
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