nVent Electric (NYSE:NVT – Get Free Report) and AUO (OTCMKTS:AUOTY – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
90.1% of nVent Electric shares are held by institutional investors. 1.7% of nVent Electric shares are held by company insiders. Comparatively, 16.0% of AUO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares nVent Electric and AUO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nVent Electric | 11.37% | 16.82% | 9.03% |
| AUO | 2.06% | 3.58% | 1.48% |
Dividends
Earnings and Valuation
This table compares nVent Electric and AUO”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nVent Electric | $4.33 billion | 6.21 | $710.20 million | $3.01 | 55.19 |
| AUO | $9.04 billion | 0.63 | $219.80 million | $0.24 | 30.92 |
nVent Electric has higher earnings, but lower revenue than AUO. AUO is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
nVent Electric has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for nVent Electric and AUO, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nVent Electric | 0 | 1 | 11 | 2 | 3.07 |
| AUO | 0 | 0 | 0 | 0 | 0.00 |
nVent Electric presently has a consensus price target of $187.27, indicating a potential upside of 12.73%. Given nVent Electric’s stronger consensus rating and higher possible upside, analysts plainly believe nVent Electric is more favorable than AUO.
Summary
nVent Electric beats AUO on 15 of the 18 factors compared between the two stocks.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
About AUO
AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.
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