Preformed Line Products (NASDAQ:PLPC – Get Free Report) and Garmin (NYSE:GRMN – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.
Earnings & Valuation
This table compares Preformed Line Products and Garmin”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Preformed Line Products | $669.34 million | 2.99 | $35.28 million | $6.95 | 58.94 |
| Garmin | $7.25 billion | 6.29 | $1.66 billion | $8.97 | 26.33 |
Analyst Ratings
This is a summary of recent recommendations for Preformed Line Products and Garmin, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Preformed Line Products | 0 | 2 | 0 | 0 | 2.00 |
| Garmin | 0 | 4 | 2 | 1 | 2.57 |
Preformed Line Products currently has a consensus price target of $275.00, indicating a potential downside of 32.86%. Garmin has a consensus price target of $269.40, indicating a potential upside of 14.08%. Given Garmin’s stronger consensus rating and higher possible upside, analysts clearly believe Garmin is more favorable than Preformed Line Products.
Dividends
Preformed Line Products pays an annual dividend of $0.84 per share and has a dividend yield of 0.2%. Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.8%. Preformed Line Products pays out 12.1% of its earnings in the form of a dividend. Garmin pays out 46.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Garmin has increased its dividend for 8 consecutive years. Garmin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Preformed Line Products and Garmin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Preformed Line Products | 4.92% | 8.96% | 6.48% |
| Garmin | 23.26% | 20.07% | 16.34% |
Institutional and Insider Ownership
41.2% of Preformed Line Products shares are held by institutional investors. Comparatively, 81.6% of Garmin shares are held by institutional investors. 33.0% of Preformed Line Products shares are held by company insiders. Comparatively, 19.5% of Garmin shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Preformed Line Products has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Garmin has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
Summary
Garmin beats Preformed Line Products on 15 of the 18 factors compared between the two stocks.
About Preformed Line Products
Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable, data communication, and other industries. The company offers optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was incorporated in 1947 and is headquartered in Mayfield Village, Ohio.
About Garmin
Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.
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