Electro Scientific Industries (NASDAQ: ESIO) and FuelCell Energy (NASDAQ:FCEL) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
This is a breakdown of recent ratings and target prices for Electro Scientific Industries and FuelCell Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electro Scientific Industries||0||0||4||0||3.00|
Electro Scientific Industries presently has a consensus target price of $33.50, indicating a potential upside of 73.49%. FuelCell Energy has a consensus target price of $3.70, indicating a potential upside of 95.77%. Given FuelCell Energy’s higher possible upside, analysts plainly believe FuelCell Energy is more favorable than Electro Scientific Industries.
Insider & Institutional Ownership
86.6% of Electro Scientific Industries shares are owned by institutional investors. Comparatively, 15.6% of FuelCell Energy shares are owned by institutional investors. 6.2% of Electro Scientific Industries shares are owned by company insiders. Comparatively, 1.1% of FuelCell Energy shares are owned 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.
This table compares Electro Scientific Industries and FuelCell Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electro Scientific Industries||31.59%||40.37%||26.35%|
Risk and Volatility
Electro Scientific Industries has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Valuation and Earnings
This table compares Electro Scientific Industries and FuelCell Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Electro Scientific Industries||$367.88 million||1.76||$116.22 million||$2.68||7.21|
|FuelCell Energy||$95.67 million||1.61||-$53.90 million||($1.11)||-1.70|
Electro Scientific Industries has higher revenue and earnings than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than Electro Scientific Industries, indicating that it is currently the more affordable of the two stocks.
Electro Scientific Industries beats FuelCell Energy on 11 of the 14 factors compared between the two stocks.
Electro Scientific Industries Company Profile
Electro Scientific Industries, Inc., together with its subsidiaries, supplies laser-based microfabrication solutions for the microtechnology industry worldwide. It provides printed circuit boards, including laser via drilling systems for electrical interconnect applications; micro via drilling technology that addresses the changing applications in integrated circuit packages, multichip modules, and high density interconnect circuit boards; and ultraviolet laser processing systems comprising single-beam and multi-beam systems. It also offers semiconductor manufacturing products comprising wafer marking equipment for use in serialization and wafer identification; wafer and circuit trim tools that adjust the electrical performance of semiconductor devices or hybrid circuits; and liquid crystal display (LCD) repair tools; and laser LCD repair systems to enhance the manufacture of flat panel displays. In addition, the company provides component test products that combine high-speed small parts handling technology with real-time control systems to provide inspection solutions for manufacturers of multilayer ceramic capacitors and other passive components, such as capacitor arrays, inductors, resistors, varistors, and hybrid circuits. Further, it offers industrial machining products, such as platforms for precision drilling, scribing, cutting, etching, routing, and marking various materials and devices; and laser systems to manufacturers of end devices for drilling, marking, and cutting. The company sells its products through direct sales and service offices, value-added resellers, and independent representatives. Electro Scientific Industries, Inc. was founded in 1944 and is headquartered in Portland, Oregon.
FuelCell Energy Company Profile
FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company offers SureSource power plants, a tri-generation distributed hydrogen configuration that generates electricity, heat, and hydrogen for commercial, industrial, government, and utility customers; and fuel cell carbon capture solution for coal or gas-fired power plants. It also develops solid oxide fuel cells for adjacent sub-megawatt applications to the markets for megawatt-class SureSource power plants, as well as energy storage applications. The company serves various markets, such as utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, and commercial and hospitality. It primarily operates in the United States, South Korea, England, Germany, Canada, and Spain. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
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