Analyzing NeoPhotonics Corporation (NPTN) and IEC Electronics Corp (IEC)

IEC Electronics Corp (NYSE: IEC) and NeoPhotonics Corporation (NYSE:NPTN) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for IEC Electronics Corp and NeoPhotonics Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IEC Electronics Corp 0 1 2 0 2.67
NeoPhotonics Corporation 0 3 5 1 2.78

IEC Electronics Corp currently has a consensus price target of $5.10, indicating a potential upside of 13.08%. NeoPhotonics Corporation has a consensus price target of $8.92, indicating a potential upside of 69.20%. Given NeoPhotonics Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe NeoPhotonics Corporation is more favorable than IEC Electronics Corp.

Earnings and Valuation

This table compares IEC Electronics Corp and NeoPhotonics Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IEC Electronics Corp $97.25 million 0.48 $3.44 million N/A N/A
NeoPhotonics Corporation $358.05 million 0.64 $338,000.00 ($0.62) -8.50

IEC Electronics Corp has higher revenue, but lower earnings than NeoPhotonics Corporation.

Profitability

This table compares IEC Electronics Corp and NeoPhotonics Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IEC Electronics Corp 3.04% 24.24% 6.33%
NeoPhotonics Corporation -7.28% -9.43% -5.36%

Insider and Institutional Ownership

85.3% of NeoPhotonics Corporation shares are owned by institutional investors. 17.3% of NeoPhotonics Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

NeoPhotonics Corporation beats IEC Electronics Corp on 8 of the 12 factors compared between the two stocks.

About IEC Electronics Corp

IEC Electronics Corp. provides electronic manufacturing services (EMS) to a range of technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with an array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. It offers its customers a range of manufacturing services, combined with scientific technical support to ensure their products perform for the critical applications they are intended for. Its products are distributed to and through original equipment manufacturers (OEMs). Its capabilities include design and test development, analysis and testing laboratory, custom functional test design and component risk mitigation.

About NeoPhotonics Corporation

NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.

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