EnerSys (NYSE: ENS) and Houston Wire & Cable (NASDAQ:HWCC) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Valuation and Earnings
This table compares EnerSys and Houston Wire & Cable’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Houston Wire & Cable
EnerSys has higher revenue and earnings than Houston Wire & Cable. EnerSys is trading at a lower price-to-earnings ratio than Houston Wire & Cable, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for EnerSys and Houston Wire & Cable, as provided by MarketBeat.
||Strong Buy Ratings
|Houston Wire & Cable
EnerSys currently has a consensus target price of $78.00, suggesting a potential upside of 10.89%. Houston Wire & Cable has a consensus target price of $8.00, suggesting a potential upside of 0.63%. Given EnerSys’ higher possible upside, equities research analysts clearly believe EnerSys is more favorable than Houston Wire & Cable.
Volatility and Risk
EnerSys has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Houston Wire & Cable has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.
Institutional and Insider Ownership
97.2% of EnerSys shares are owned by institutional investors. Comparatively, 65.1% of Houston Wire & Cable shares are owned by institutional investors. 1.4% of EnerSys shares are owned by company insiders. Comparatively, 3.9% of Houston Wire & Cable shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares EnerSys and Houston Wire & Cable’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Houston Wire & Cable
EnerSys pays an annual dividend of $0.70 per share and has a dividend yield of 1.0%. Houston Wire & Cable does not pay a dividend. EnerSys pays out 14.7% of its earnings in the form of a dividend.
EnerSys beats Houston Wire & Cable on 11 of the 15 factors compared between the two stocks.
EnerSys manufactures, markets, and distributes industrial batteries. The company offers chargers, outdoor cabinet enclosures, power equipment, and battery accessories, as well as related after-market and customer-support services for industrial batteries. It also provides reserve power products that are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and other specialty power applications, including medical and security systems, premium starting, lighting, and ignition applications, as well as in switchgear, electrical control systems used in electric utilities, large-scale energy storage, energy pipelines, commercial aircraft, satellites, military aircraft, submarines, ships, and tactical vehicles. The company's reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries. In addition, the company offers motive power products that are used to provide power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as mining equipment, diesel locomotive starting, and other rail equipment. It sells its products through a network of distributors, independent representatives, and internal sales forces in North and South America, Europe, the Middle East, and Africa, as well as Asia, Australia, and Oceania. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001 to reflect its focus on the energy systems business. EnerSys was founded in 1999 and is headquartered in Reading, Pennsylvania.
About Houston Wire & Cable
Houston Wire & Cable Company is a holding company. The Company is engaged in provision of electrical and mechanical wire and cable, hardware and related services. It operates through sales of wire and cable, hardware and related services segment in the United States market. Its cable management program includes purchasing and storing inventory for product availability. The Company offers products in categories of wire and cable, including continuous and interlocked armor cable; control and power cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; lead and high temperature cable; medium voltage cable; premise and category wire and cable; primary and secondary aluminum distribution cable, and synthetic fiber rope slings, chain, shackles, and other related hardware. The Company also offers private branded products, including its brand LifeGuard, a low smoke zero halogen (LSZH) cable. Its products are used in repair and replacement work.
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