Hollysys Automation Technologies (NASDAQ:HOLI) and CompX International (NYSE:CIX) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Hollysys Automation Technologies and CompX International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Hollysys Automation Technologies | 0 | 1 | 1 | 0 | 2.50 |
CompX International | 0 | 0 | 0 | 0 | N/A |
Hollysys Automation Technologies presently has a consensus target price of $19.15, indicating a potential upside of 49.03%. Given Hollysys Automation Technologies' higher probable upside, research analysts clearly believe Hollysys Automation Technologies is more favorable than CompX International.
Earnings & Valuation
This table compares Hollysys Automation Technologies and CompX International's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Hollysys Automation Technologies | $503.33 million | 1.54 | $79.40 million | $1.31 | 9.80 |
CompX International | $124.20 million | 2.03 | $16 million | N/A | N/A |
Hollysys Automation Technologies has higher revenue and earnings than CompX International.
Institutional & Insider Ownership
79.4% of Hollysys Automation Technologies shares are held by institutional investors. Comparatively, 10.4% of CompX International shares are held by institutional investors. 0.2% of CompX International 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.
Dividends
Hollysys Automation Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. CompX International pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Hollysys Automation Technologies pays out 15.3% of its earnings in the form of a dividend. CompX International has raised its dividend for 1 consecutive years. CompX International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Hollysys Automation Technologies has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, CompX International has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
Profitability
This table compares Hollysys Automation Technologies and CompX International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Hollysys Automation Technologies | 13.79% | 7.07% | 5.15% |
CompX International | 9.99% | 6.91% | 6.32% |
Summary
Hollysys Automation Technologies beats CompX International on 8 of the 15 factors compared between the two stocks.