Houston Wire & Cable (NASDAQ: HWCC) and EnerSys (NYSE:ENS) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider and Institutional Ownership
65.1% of Houston Wire & Cable shares are held by institutional investors. Comparatively, 97.2% of EnerSys shares are held by institutional investors. 4.0% of Houston Wire & Cable shares are held by company insiders. Comparatively, 1.4% of EnerSys shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and recommmendations for Houston Wire & Cable and EnerSys, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Houston Wire & Cable||0||0||1||0||3.00|
Houston Wire & Cable presently has a consensus price target of $8.00, indicating a potential upside of 1.91%. EnerSys has a consensus price target of $78.00, indicating a potential upside of 17.31%. Given EnerSys’ higher possible upside, analysts plainly believe EnerSys is more favorable than Houston Wire & Cable.
Volatility and Risk
Houston Wire & Cable has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, EnerSys has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
This table compares Houston Wire & Cable and EnerSys’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Houston Wire & Cable||-0.07%||2.68%||1.29%|
EnerSys pays an annual dividend of $0.70 per share and has a dividend yield of 1.1%. Houston Wire & Cable does not pay a dividend. EnerSys pays out 14.7% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Houston Wire & Cable and EnerSys’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Houston Wire & Cable||$317.70 million||0.41||-$220,000.00||$0.15||52.33|
|EnerSys||$2.37 billion||1.18||$160.21 million||$4.75||14.00|
EnerSys has higher revenue and earnings than Houston Wire & Cable. EnerSys is trading at a lower price-to-earnings ratio than Houston Wire & Cable, indicating that it is currently the more affordable of the two stocks.
EnerSys beats Houston Wire & Cable on 12 of the 16 factors compared between the two stocks.
Houston Wire & Cable Company Profile
Houston Wire & Cable Company is a holding company. The Company is engaged in provision of electrical and mechanical wire and cable, hardware and related services. It operates through sales of wire and cable, hardware and related services segment in the United States market. Its cable management program includes purchasing and storing inventory for product availability. The Company offers products in categories of wire and cable, including continuous and interlocked armor cable; control and power cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; lead and high temperature cable; medium voltage cable; premise and category wire and cable; primary and secondary aluminum distribution cable, and synthetic fiber rope slings, chain, shackles, and other related hardware. The Company also offers private branded products, including its brand LifeGuard, a low smoke zero halogen (LSZH) cable. Its products are used in repair and replacement work.
EnerSys Company Profile
EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries. Its segments based on geographic regions consist of Americas, which consists of North and South America; EMEA, which includes Europe, the Middle East and Africa, and Asia, which includes Asia, Australia and Oceania. The Company’s product lines include reserve power and motive power products. Its Reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries. The Company’s motive power products are used to provide power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications. They are used as mining equipment, diesel locomotive starting and other rail equipment.
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