Comparing IntriCon (IIN) & Mercury Systems (MRCY)

IntriCon (NASDAQ: IIN) and Mercury Systems (NASDAQ:MRCY) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares IntriCon and Mercury Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IntriCon 3.21% 15.02% 6.24%
Mercury Systems 8.68% 6.83% 5.74%

Risk & Volatility

IntriCon has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Mercury Systems has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Insider & Institutional Ownership

34.2% of IntriCon shares are held by institutional investors. Comparatively, 95.1% of Mercury Systems shares are held by institutional investors. 21.2% of IntriCon shares are held by insiders. Comparatively, 3.5% of Mercury Systems shares are held by 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for IntriCon and Mercury Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IntriCon 0 1 2 0 2.67
Mercury Systems 1 2 3 0 2.33

IntriCon currently has a consensus target price of $33.50, indicating a potential upside of 11.85%. Mercury Systems has a consensus target price of $52.00, indicating a potential upside of 51.21%. Given Mercury Systems’ higher possible upside, analysts clearly believe Mercury Systems is more favorable than IntriCon.

Earnings & Valuation

This table compares IntriCon and Mercury Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IntriCon $88.31 million 2.36 $1.80 million $0.29 103.28
Mercury Systems $408.59 million 4.06 $24.87 million $0.95 36.20

Mercury Systems has higher revenue and earnings than IntriCon. Mercury Systems is trading at a lower price-to-earnings ratio than IntriCon, indicating that it is currently the more affordable of the two stocks.

Summary

Mercury Systems beats IntriCon on 9 of the 14 factors compared between the two stocks.

About IntriCon

IntriCon Corporation, together with its subsidiaries, designs, develops, engineers, manufactures, and distributes body-worn devices in the United States, Europe, Asia, and internationally. The company operates in two segments, Body Worn Devices and Hearing Health Direct-To-Consumer. It offers micro-miniature products, microelectronics; micro-mechanical assemblies; high-precision injection-molded plastic components; and assemblies and software solutions for medical bio-telemetry devices, hearing healthcare, and professional audio communication devices markets. The company also provides medical and micro coils for pacemaker programming and interventional catheter positioning applications; bubble sensors and flow restrictors that monitor and control the flow of fluid in an intravenous infusion system; and safety needle products for original equipment manufacturing customers. In addition, it offers professional audio headset products used for emergency response needs in the fire, law enforcement, safety, aviation, and military markets; and a line of miniature ear-and head-worn devices used by performers and support staff in the music and stage performance markets. The company sells its hearing device products, and medical and professional audio communications products directly to hearing instrument manufacturers, distributors, and partnerships; and microphone products to the radio communication and professional audio industries, as well as markets and sells hearing aid devices directly to consumers through direct mail advertising, Internet, and call center. IntriCon Corporation was formerly known as Selas Corporation of America. The company was founded in 1930 and is headquartered in Arden Hills, Minnesota.

About Mercury Systems

Mercury Systems, Inc. provides sensor and safety critical mission processing subsystems for various critical defense and intelligence programs in the United States. The company's products and solutions are deployed in approximately 300 programs with 25 defense prime contractors. Its principal programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program, Gorgon Stare, Predator, F-35, Reaper, F-16 SABR, E2D Hawkeye, and Paveway. The company also designs, markets, and licenses software and middleware environments under the MultiCore Plus name to accelerate development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. In addition, it offers hardware products, including components, such as power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; embedded processing modules and boards, switch fabric boards, high speed input/output boards, digital receiver boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video processing, and Ethernet and input-output boards; and integrated subsystems. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was founded in 1981 and is headquartered in Andover, Massachusetts.

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