Contrasting Hubbell (HUBB) & Kimball Electronics (KE)

Hubbell (NYSE: HUBB) and Kimball Electronics (NASDAQ:KE) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Dividends

Hubbell pays an annual dividend of $3.08 per share and has a dividend yield of 2.3%. Kimball Electronics does not pay a dividend. Hubbell pays out 70.0% of its earnings in the form of a dividend.

Risk and Volatility

Hubbell has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hubbell and Kimball Electronics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hubbell $3.67 billion 2.01 $243.10 million $4.40 30.54
Kimball Electronics $930.91 million 0.51 $34.17 million $0.60 29.92

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

Institutional & Insider Ownership

82.4% of Hubbell shares are held by institutional investors. Comparatively, 57.1% of Kimball Electronics shares are held by institutional investors. 1.3% of Hubbell shares are held by company insiders. Comparatively, 3.9% of Kimball Electronics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Hubbell 6.63% 20.16% 8.97%
Kimball Electronics 1.66% 9.65% 5.86%

Analyst Recommendations

This is a summary of recent recommendations for Hubbell and Kimball Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hubbell 0 1 5 0 2.83
Kimball Electronics 0 0 0 0 N/A

Hubbell currently has a consensus price target of $154.00, indicating a potential upside of 14.59%. Given Hubbell’s higher probable upside, equities analysts clearly believe Hubbell is more favorable than Kimball Electronics.

Summary

Hubbell beats Kimball Electronics on 13 of the 15 factors compared between the two stocks.

Hubbell Company Profile

Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.

Kimball Electronics Company Profile

Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.

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