American Superconductor (NASDAQ: AMSC) and Franklin Electric (NASDAQ:FELE) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
25.4% of American Superconductor shares are held by institutional investors. Comparatively, 78.0% of Franklin Electric shares are held by institutional investors. 2.6% of American Superconductor shares are held by company insiders. Comparatively, 2.5% of Franklin Electric shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings for American Superconductor and Franklin Electric, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
American Superconductor presently has a consensus target price of $7.14, indicating a potential upside of 15.39%. Franklin Electric has a consensus target price of $47.33, indicating a potential upside of 8.44%. Given American Superconductor’s stronger consensus rating and higher possible upside, equities research analysts plainly believe American Superconductor is more favorable than Franklin Electric.
Earnings and Valuation
This table compares American Superconductor and Franklin Electric’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Superconductor||$75.19 million||1.72||-$27.37 million||($2.16)||-2.87|
|Franklin Electric||$1.12 billion||1.81||$78.18 million||$1.92||22.73|
Franklin Electric has higher revenue and earnings than American Superconductor. American Superconductor is trading at a lower price-to-earnings ratio than Franklin Electric, indicating that it is currently the more affordable of the two stocks.
This table compares American Superconductor and Franklin Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
American Superconductor has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Franklin Electric has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
Franklin Electric pays an annual dividend of $0.43 per share and has a dividend yield of 1.0%. American Superconductor does not pay a dividend. Franklin Electric pays out 22.4% of its earnings in the form of a dividend. Franklin Electric has raised its dividend for 8 consecutive years.
Franklin Electric beats American Superconductor on 11 of the 16 factors compared between the two stocks.
About American Superconductor
American Superconductor Corporation (AMSC) is a provider of megawatt-scale solutions. The Company operates through two segments: Wind and Grid. Through the Company’s Windtec Solutions brand, the Wind business segment enables manufacturers to field wind turbines. Through the Company’s Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power. AMSC supplies power electronics and control systems, licenses its engineered wind turbine designs and provides customer support services to wind turbine manufacturers. The Company provides a range of power electronics and software-based control systems. AMSC provides transmission planning services that enable it to identify power grid congestion and other risks. The Company also sells grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems.
About Franklin Electric
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers submersible motors, pumps, drives, electronic controls, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, and industrial applications; and electronic drives and controls are used in motors for controlling functionality, as well as providing protection from various hazards, such as electric surges, over-heating, and dry wells and tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in submersible fueling system applications. Its fuel pumping systems are used principally in total system solutions for underground gasoline, diesel, and biofuel systems. This segment serves other energy markets, such as power reliability systems, as well as includes intelligent electronic devices for online monitoring of the power utility, hydroelectric, and industrial markets. The Distribution segment sells to and provides pre-sale support and specifications to the installing contractors. It sells products produced by the Water Systems segment and other brands. The company sells its products to specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.
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