Methode Electronics (MEI) Competitors

Benchmark Electronics (NYSE:BHE) and Methode Electronics (NYSE:MEI) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, media sentiment, dividends and analyst recommendations.

Is BHE or MEI a better dividend stock?

Benchmark Electronics pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. Methode Electronics pays an annual dividend of $0.56 per share and has a dividend yield of 8.1%. Benchmark Electronics pays out 46.9% of its earnings in the form of a dividend. Methode Electronics pays out -31.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Benchmark Electronics has increased its dividend for 1 consecutive years. Methode Electronics is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts prefer BHE or MEI?

Benchmark Electronics currently has a consensus target price of $47.00, suggesting a potential upside of 18.16%. Methode Electronics has a consensus target price of $10.50, suggesting a potential upside of 51.52%. Given Methode Electronics' higher possible upside, analysts clearly believe Methode Electronics is more favorable than Benchmark Electronics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benchmark Electronics	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Methode Electronics	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Is BHE or MEI more profitable?

Benchmark Electronics has a net margin of 2.03% compared to Methode Electronics' net margin of -5.97%. Benchmark Electronics' return on equity of 6.37% beat Methode Electronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Benchmark Electronics	2.03%	6.37%	3.28%
Methode Electronics	-5.97%	-5.60%	-3.01%

Do institutionals & insiders have more ownership in BHE or MEI?

92.3% of Benchmark Electronics shares are held by institutional investors. Comparatively, 95.5% of Methode Electronics shares are held by institutional investors. 2.2% of Benchmark Electronics shares are held by company insiders. Comparatively, 1.4% of Methode Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Which has preferable earnings & valuation, BHE or MEI?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Electronics	$2.66B	0.54	$63.33M	$1.45	27.43
Methode Electronics	$1.05B	0.24	-$123.30M	-$1.78	-3.89

Does the media favor BHE or MEI?

In the previous week, Methode Electronics had 24 more articles in the media than Benchmark Electronics. MarketBeat recorded 26 mentions for Methode Electronics and 2 mentions for Benchmark Electronics. Benchmark Electronics' average media sentiment score of 0.83 beat Methode Electronics' score of -0.05 indicating that Benchmark Electronics is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Benchmark Electronics	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Methode Electronics	2 Very Positive mention(s)	5 Positive mention(s)	12 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Neutral

Which has more volatility & risk, BHE or MEI?

Benchmark Electronics has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Methode Electronics has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Summary

Benchmark Electronics beats Methode Electronics on 13 of the 19 factors compared between the two stocks.