Comparing Sensata Technologies (NYSE:ST) and Frequency Electronics (NASDAQ:FEIM)

Sensata Technologies (NYSE:ST) and Frequency Electronics (NASDAQ:FEIM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Volatility & Risk

Sensata Technologies has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares Sensata Technologies and Frequency Electronics’ 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%
Frequency Electronics	35.34%	57.41%	27.87%

Valuation and Earnings

This table compares Sensata Technologies and Frequency Electronics”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	1.08	$128.48 million	$0.81	35.86
Frequency Electronics	$55.27 million	3.92	$5.59 million	$2.41	9.29

Sensata Technologies has higher revenue and earnings than Frequency Electronics. Frequency Electronics 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 & Institutional Ownership

99.4% of Sensata Technologies shares are held by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are held by institutional investors. 0.9% of Sensata Technologies shares are held by company insiders. Comparatively, 26.1% of Frequency Electronics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sensata Technologies and Frequency Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	6	5	0	2.33
Frequency Electronics	0	0	0	0	0.00

Sensata Technologies currently has a consensus target price of $34.08, indicating a potential upside of 17.35%. Given Sensata Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Sensata Technologies is more favorable than Frequency Electronics.

Summary

Sensata Technologies beats Frequency Electronics 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 Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.