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Critical Review: American Superconductor Corporation (AMSC) and Kimball Electronics (KE)

Kimball Electronics (NASDAQ: KE) and American Superconductor Corporation (NASDAQ:AMSC) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitabiliy. Risk & Volatility

Kimball Electronics has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Comparatively, American Superconductor Corporation has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Earnings and Valuation This table compares Kimball Electronics and American Superconductor Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kimball Electronics £930.91 million 0.55 £66.39 million £1.24 15.30
American Superconductor Corporation £75.20 million 0.75 -£20.02 million (£1.99) -1.52

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

Insider & Institutional Ownership

57.4% of Kimball Electronics shares are owned by institutional investors. Comparatively, 31.2% of American Superconductor Corporation shares are owned by institutional investors.

3.2% of Kimball Electronics shares are owned by insiders. Comparatively, 2.6% of American Superconductor Corporation shares are owned by insiders.

Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth. Profitability This table compares Kimball Electronics and American Superconductor Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball Electronics 3.67% 9.32% 5.82%
American Superconductor Corporation -36.40% -42.53% -24.82%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kimball Electronics and American Superconductor Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball Electronics 0 0 1 0 3.00
American Superconductor Corporation 0 1 5 0 2.83

Kimball Electronics currently has a consensus price target of £17.00, indicating a potential downside of 10.41%. American Superconductor Corporation has a consensus price target of £7.67, indicating a potential upside of 153.86%. Given American Superconductor Corporation’s higher probable upside, analysts clearly believe American Superconductor Corporation is more favorable than Kimball Electronics.

Summary Kimball Electronics beats American Superconductor Corporation on 9 of the 13 factors compared between the two stocks. About Kimball Electronics

Kimball Electronics logoKimball 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. About American Superconductor Corporation

American Superconductor Corporation logoAmerican 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.

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References

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