Reviewing AVX (AVX) and Tel-Instrument Electronics (TIKK)

AVX (NYSE:AVX) and Tel-Instrument Electronics (OTCMKTS:TIKK) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Dividends

AVX pays an annual dividend of $0.46 per share and has a dividend yield of 2.5%. Tel-Instrument Electronics does not pay a dividend. AVX pays out 57.5% of its earnings in the form of a dividend. AVX has increased its dividend for 6 consecutive years.

Earnings and Valuation

This table compares AVX and Tel-Instrument Electronics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AVX $1.56 billion 2.00 $4.91 million $0.80 23.13
Tel-Instrument Electronics $10.02 million 0.89 -$4.32 million N/A N/A

AVX has higher revenue and earnings than Tel-Instrument Electronics.

Volatility and Risk

AVX has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Tel-Instrument Electronics has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for AVX and Tel-Instrument Electronics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVX 0 1 1 0 2.50
Tel-Instrument Electronics 0 0 0 0 N/A

AVX currently has a consensus price target of $18.00, suggesting a potential downside of 2.70%. Given AVX’s higher probable upside, equities analysts clearly believe AVX is more favorable than Tel-Instrument Electronics.

Profitability

This table compares AVX and Tel-Instrument Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AVX 13.01% 10.27% 8.61%
Tel-Instrument Electronics -11.34% N/A -14.90%

Insider & Institutional Ownership

25.9% of AVX shares are owned by institutional investors. Comparatively, 1.6% of Tel-Instrument Electronics shares are owned by institutional investors. 0.5% of AVX shares are owned by company insiders. Comparatively, 28.1% of Tel-Instrument Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

AVX beats Tel-Instrument Electronics on 11 of the 14 factors compared between the two stocks.

About AVX

AVX Corporation, together with its subsidiaries, manufactures, supplies, and resells various electronic components, interconnect devices, sensing and control devices, and related products worldwide. The company operates through three segments: Electronic Components; Interconnect, Sensing and Control Devices; and Kyocera Electronic Devices Resale. The Electronic Components segment primarily offers surface mount and leaded ceramic, film, and tantalum capacitors; RF thick and thin film components; ceramic and film power capacitors; super capacitors; EMI filters; thick and thin film packages of multiple integrated components; varistors; thermistors; inductors; resistive products; and passive and active electronic antennas. The Interconnect, Sensing and Control Devices segment manufactures and resells electronic connectors, interconnect systems, and sensing and control devices for use in various industries. The Kyocera Electronic Devices Resale segment distributes and sells ceramic capacitors, RF modules, frequency control devices, SAW devices, sensor products, actuators, acoustic devices, and connectors produced by Kyocera Corporation of Japan. The company serves various industries, such as telecommunications, information technology hardware, automotive electronics, medical devices and instrumentation, industrial instrumentation, transportation, energy harvesting, defense and aerospace electronic systems, and consumer electronics industries. It markets its products through its direct sales force and independent manufacturers' representatives to multi-national original equipment manufacturers, independent electronic component distributors, and electronic manufacturing service providers. The company was founded in 1972 and is headquartered in Fountain Inn, South Carolina. AVX Corporation is a subsidiary of Kyocera Corporation.

About Tel-Instrument Electronics

Tel-Instrument Electronics Corp. designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets in the United States and internationally. It operates in two segments, Avionics Government and Avionics Commercial. The company provides instruments to test, measure, calibrate, and repair a range of airborne navigation and communication equipment. Its products also include TS-4530A, an identification friend or foe test set; T-47/M5, a dual crypto test set; and AN/ARM-206, an intermediate level TACAN test set. In addition, it offers AN/USM-708 and AN/USM-719, which are communications/navigation radio frequency avionics flight line testers; TR-220, a test set that provides test capability for traffic and collision avoidance systems (TCAS), distance measuring equipment, and transponders; TR-36, a commercial navigation and communication test set that provide ramp testing; and TR-420, a ramp test set to test the operation of transponders and interrogators. Further, the company provides multifunction ramp test sets under the T-47NC, T-47NH, and T-47G names; TR-100AF, a rugged ramp test used to verify airborne TACAN equipment; and AN/APM-480A, a transponder, interrogator, and TCAS test set. It sells its products directly or through distributors. The company was founded in 1947 and is headquartered in East Rutherford, New Jersey.

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