Head-To-Head Contrast: Kimball Electronics (KE) versus Sanmina (SANM)

Kimball Electronics (NASDAQ: KE) and Sanmina (NASDAQ:SANM) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

60.5% of Kimball Electronics shares are owned by institutional investors. Comparatively, 93.9% of Sanmina shares are owned by institutional investors. 3.9% of Kimball Electronics shares are owned by company insiders. Comparatively, 5.1% of Sanmina shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Kimball Electronics and Sanmina’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimball Electronics $930.91 million 0.57 $34.17 million N/A N/A
Sanmina $6.87 billion 0.30 $138.83 million $2.87 10.45

Sanmina has higher revenue and earnings than Kimball Electronics.

Risk and Volatility

Kimball Electronics has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Sanmina has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Kimball Electronics and Sanmina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball Electronics 1.84% 10.23% 6.09%
Sanmina -0.99% 10.99% 4.60%

Analyst Recommendations

This is a summary of current ratings and target prices for Kimball Electronics and Sanmina, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball Electronics 0 0 0 0 N/A
Sanmina 0 3 3 0 2.50

Sanmina has a consensus target price of $35.25, suggesting a potential upside of 17.50%. Given Sanmina’s higher probable upside, analysts clearly believe Sanmina is more favorable than Kimball Electronics.

Summary

Sanmina beats Kimball Electronics on 7 of the 12 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc., a contract electronic manufacturing services company, engages in producing durable electronics for the automotive, medical, industrial, and public safety markets primarily in the United States, China, Mexico, Poland, Romania, and Thailand. Its engineering, manufacturing, and supply chain services include design services; rapid prototyping and new product introduction support; production and testing of printed circuit board assemblies; industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing; assembly, production, and packaging of other related non-electronic products; supply chain services; and product life cycle management services. The company was founded in 1961 and is headquartered in Jasper, Indiana.

About Sanmina

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. The company offers product design and engineering solutions, including concept development, detailed design, prototyping, validation, preproduction, and manufacturing design release; manufacturing solutions of components, subassemblies, and complete systems; final system assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services. It also provides interconnect systems, such as printed circuit board fabrication, backplane, cable assemblies, and plastic injection moldings; mechanical systems comprising enclosures and precision machining; memory, radio frequency, optical, and microelectronic solutions; defense and aerospace products; storage solutions; and cloud-based manufacturing execution software. Sanmina Corporation offers its solutions primarily to original equipment manufacturers in the communications networks, computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, energy, and automotive industries. The company was formerly known as Sanmina-SCI Corporation and changed its name to Sanmina Corporation in November 2012. Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California.

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