Contrasting Methode Electronics (MEI) & IEH (IEHC)

Methode Electronics (NYSE:MEI) and IEH (OTCMKTS:IEHC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

Methode Electronics pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. IEH does not pay a dividend. Methode Electronics pays out 14.7% of its earnings in the form of a dividend.

Volatility & Risk

Methode Electronics has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, IEH has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Methode Electronics and IEH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Methode Electronics 0 1 1 0 2.50
IEH 0 0 0 0 N/A

Methode Electronics currently has a consensus target price of $50.00, indicating a potential upside of 65.40%. Given Methode Electronics’ higher probable upside, analysts clearly believe Methode Electronics is more favorable than IEH.

Profitability

This table compares Methode Electronics and IEH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Methode Electronics 6.49% 18.93% 12.78%
IEH 16.35% 26.62% 22.88%

Institutional & Insider Ownership

94.5% of Methode Electronics shares are held by institutional investors. Comparatively, 4.1% of IEH shares are held by institutional investors. 3.4% of Methode Electronics shares are held by company insiders. Comparatively, 46.0% of IEH shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Methode Electronics and IEH’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Methode Electronics $908.30 million 1.23 $57.20 million $3.00 10.08
IEH $23.47 million 1.27 $2.56 million N/A N/A

Methode Electronics has higher revenue and earnings than IEH.

Summary

Methode Electronics beats IEH on 8 of the 14 factors compared between the two stocks.

About Methode Electronics

Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. The company operates through four segments: Automotive, Interface, Power Products, and Other. The Automotive segment offers electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers. Its products include integrated center consoles, hidden switches, ergonomic switches, transmission lead frames, and light-emitting diode based lighting sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Interface segment provides various copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunication markets. Its solutions consist of conductive polymers, industrial safety radio remote controls, optical and copper transceivers, and solid-state field-effect consumer touch panels; and services include the design and installation of fiber optic and copper infrastructure systems, and manufacturing active and passive optical components. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus bars and devices, custom power-product assemblies, high-current low voltage flexible power cabling systems, and powder coated bus bars that are used in aerospace, computer, industrial and power conversion, military, telecommunication, and transportation markets and applications. The Other segment offers medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions. Methode Electronics, Inc. was founded in 1946 and is headquartered in Chicago, Illinois.

About IEH

IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications. Its products include are used as basic components of larger assemblies of finished goods. The company markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to government, military, aerospace, medical, automotive, industrial, test equipment, and commercial electronic markets. It markets its products in the United States, Canada, Israel, India, various Pacific Rim countries, South Korea, and the European Union. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1937 and is based in Brooklyn, New York.

Receive News & Ratings for Methode Electronics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Methode Electronics and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply