Matthews International (NASDAQ: MATW) and Broadwind Energy (NASDAQ:BWEN) are both small-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Volatility and Risk
Matthews International has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Broadwind Energy has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
This table compares Matthews International and Broadwind Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Matthews International||$1.52 billion||1.07||$74.36 million||$3.60||13.94|
|Broadwind Energy||$146.79 million||0.32||-$3.64 million||($0.55)||-5.51|
Matthews International has higher revenue and earnings than Broadwind Energy. Broadwind Energy is trading at a lower price-to-earnings ratio than Matthews International, indicating that it is currently the more affordable of the two stocks.
This table compares Matthews International and Broadwind Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
80.7% of Matthews International shares are owned by institutional investors. Comparatively, 43.6% of Broadwind Energy shares are owned by institutional investors. 3.8% of Matthews International shares are owned by company insiders. Comparatively, 6.6% of Broadwind Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for Matthews International and Broadwind Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Matthews International presently has a consensus target price of $83.50, indicating a potential upside of 66.33%. Broadwind Energy has a consensus target price of $6.50, indicating a potential upside of 114.52%. Given Broadwind Energy’s higher possible upside, analysts plainly believe Broadwind Energy is more favorable than Matthews International.
Matthews International pays an annual dividend of $0.76 per share and has a dividend yield of 1.5%. Broadwind Energy does not pay a dividend. Matthews International pays out 21.1% of its earnings in the form of a dividend. Matthews International has increased its dividend for 6 consecutive years.
Matthews International beats Broadwind Energy on 12 of the 16 factors compared between the two stocks.
About Matthews International
Matthews International Corporation provides brand solutions, memorialization products, and industrial products in the United States, Central and South America, Canada, Europe, Australia, and Asia. It operates through three segments: SGK Brand Solutions, Memorialization, and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment, delivery, brand management, 3-D graphics renderings, pre-media graphics services, printing plates, gravure cylinders, steel bases, embossing tools, special purpose machinery, engineering assistance, print process assistance, print production management, digital asset management, content management, and package design services to brand owners and packaging manufacturers; and creative digital graphics services, as well as designs, engineers, manufactures, and executes merchandising and display systems. The Memorialization segment manufactures and markets a range of memorialization products for use in cemeteries, funeral homes, and crematories. Its products include cast bronze memorials, flush bronze and granite memorials, upright granite memorials and monuments, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features and statues, caskets, community and family mausoleums, and other memorialization products, as well as architectural products to identify or commemorate people, places, events, and accomplishments. The Industrial Technologies segment designs, manufactures, and distributes marking and coding equipment and consumables, industrial automation products, and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. It serves manufacturers, suppliers, and distributors of durable goods and building products; consumer goods manufacturers; and pharmaceutical producers. Matthews International Corporation was founded in 1850 and is based in Pittsburgh, Pennsylvania.
About Broadwind Energy
Broadwind Energy, Inc. provides technologically advanced products and services to energy, mining and infrastructure sector customers, primarily in the United States. The Company is engaged primarily in United States wind energy industry. The Company operates through two segments: Towers and Weldments, and Gearing. The Company’s Towers and Weldments segment manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for multiple megawatt (MW) wind turbines. The Company’s Gearing segment engineers, builds and remanufactures precision gears and gearing systems for oil and gas, wind energy, mining, steel and other industrial applications. Within the United States wind energy industry, it provides products and services to wind turbine manufacturers. It also provides precision gearing and specialty weldments to a range of industrial customers for oil and gas, mining, steel and other industrial applications.
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