Contrasting Electro Scientific Industries (NASDAQ:ESIO) and Its Rivals

Electro Scientific Industries (NASDAQ: ESIO) is one of 32 public companies in the “Electronic Component” industry, but how does it compare to its peers? We will compare Electro Scientific Industries to similar companies based on the strength of its analyst recommendations, institutional ownership, risk, profitability, dividends, earnings and valuation.

Risk and Volatility

Electro Scientific Industries has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Electro Scientific Industries’ peers have a beta of 1.03, suggesting that their average share price is 3% more volatile than the S&P 500.

Profitability

This table compares Electro Scientific Industries and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electro Scientific Industries -18.49% -22.18% -15.53%
Electro Scientific Industries Competitors 1.90% -2.19% 0.48%

Valuation & Earnings

This table compares Electro Scientific Industries and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Electro Scientific Industries $186.04 million $2.78 million -13.80
Electro Scientific Industries Competitors $894.66 million $186.07 million 11.41

Electro Scientific Industries’ peers have higher revenue and earnings than Electro Scientific Industries. Electro Scientific Industries is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

73.2% of Electro Scientific Industries shares are held by institutional investors. Comparatively, 56.1% of shares of all “Electronic Component” companies are held by institutional investors. 6.2% of Electro Scientific Industries shares are held by insiders. Comparatively, 9.0% of shares of all “Electronic Component” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Electro Scientific Industries and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electro Scientific Industries 0 0 2 0 3.00
Electro Scientific Industries Competitors 42 258 467 6 2.57

Electro Scientific Industries presently has a consensus target price of $13.25, suggesting a potential downside of 8.56%. As a group, “Electronic Component” companies have a potential downside of 9.75%. Given Electro Scientific Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Electro Scientific Industries is more favorable than its peers.

Summary

Electro Scientific Industries peers beat Electro Scientific Industries on 8 of the 12 factors compared.

About Electro Scientific Industries

Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.

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