Benchmark Electronics (BHE) vs. Mellanox Technologies (MLNX) Head-To-Head Analysis

Benchmark Electronics (NYSE: BHE) and Mellanox Technologies (NASDAQ:MLNX) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Benchmark Electronics and Mellanox Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Benchmark Electronics 2.63% 5.62% 3.83%
Mellanox Technologies -0.92% 4.76% 3.24%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Benchmark Electronics and Mellanox Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Benchmark Electronics 0 3 0 0 2.00
Mellanox Technologies 1 7 4 0 2.25

Benchmark Electronics presently has a consensus price target of $36.67, indicating a potential upside of 22.22%. Mellanox Technologies has a consensus price target of $52.50, indicating a potential downside of 11.39%. Given Benchmark Electronics’ higher possible upside, equities analysts plainly believe Benchmark Electronics is more favorable than Mellanox Technologies.

Valuation and Earnings

This table compares Benchmark Electronics and Mellanox Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Benchmark Electronics $2.31 billion 0.65 $64.04 million $1.25 24.00
Mellanox Technologies $857.50 million 3.52 $18.51 million ($0.16) -370.31

Benchmark Electronics has higher revenue and earnings than Mellanox Technologies. Mellanox Technologies is trading at a lower price-to-earnings ratio than Benchmark Electronics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Benchmark Electronics has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Mellanox Technologies has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

94.9% of Benchmark Electronics shares are owned by institutional investors. Comparatively, 60.8% of Mellanox Technologies shares are owned by institutional investors. 0.9% of Benchmark Electronics shares are owned by company insiders. Comparatively, 6.1% of Mellanox Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Benchmark Electronics beats Mellanox Technologies on 8 of the 14 factors compared between the two stocks.

Benchmark Electronics Company Profile

Benchmark Electronics, Inc. is a provider of electronic manufacturing services. The Company operates through three segments: the Americas, Asia and Europe. It provides services to original equipment manufacturers of industrial control equipment, including equipment for the aerospace and defense industry; telecommunication equipment; computers and related products for business enterprises; medical devices, and testing and instrumentation products. It offers integrated design and manufacturing services. Its operations consist of over three principal areas: manufacturing and assembly operations, including printed circuit boards assemblies and subsystem assembly, box build and systems integration; precision technology manufacturing, which include precision machining, metal joining, assembly and functional testing, and specialized engineering services, and specialized engineering services, such as product design, printed circuit board layout, prototyping, automation and test development.

Mellanox Technologies Company Profile

Mellanox Technologies, Ltd. is a fabless semiconductor company. The Company is an integrated supplier of interconnect products and solutions based on the InfiniBand and Ethernet standards. The Company operates in the development, manufacturing, marketing and sales of interconnect products segment. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration. The products it offers include integrated circuits (ICs), adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories. Together these products form a networking solution, focused on computing, storage and communication applications used in multiple markets, including high-performance computing (HPC), cloud, Web 2.0, storage, financial services, and enterprise data center (EDC).

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