Contrasting Logitech International (LOGI) and Knowles Corporation (KN)

Logitech International (NASDAQ: LOGI) and Knowles Corporation (NYSE:KN) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Dividends

Logitech International pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. Knowles Corporation does not pay a dividend. Logitech International pays out 46.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Logitech International and Knowles Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Logitech International 0 1 5 0 2.83
Knowles Corporation 0 2 3 0 2.60

Logitech International currently has a consensus price target of $36.13, suggesting a potential upside of 4.35%. Knowles Corporation has a consensus price target of $17.80, suggesting a potential upside of 24.48%. Given Knowles Corporation’s higher probable upside, analysts clearly believe Knowles Corporation is more favorable than Logitech International.

Profitability

This table compares Logitech International and Knowles Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Logitech International 9.15% 25.18% 13.82%
Knowles Corporation -2.44% 6.98% 4.62%

Institutional and Insider Ownership

37.4% of Logitech International shares are held by institutional investors. 2.2% of Logitech International shares are held by company insiders. Comparatively, 2.2% of Knowles Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Logitech International and Knowles Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Logitech International $2.27 billion 2.48 $251.67 million $1.24 27.92
Knowles Corporation $867.60 million 1.47 $141.10 million ($0.23) -62.17

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

Risk & Volatility

Logitech International has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Summary

Logitech International beats Knowles Corporation on 12 of the 15 factors compared between the two stocks.

Logitech International Company Profile

Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company’s retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.

Knowles Corporation Company Profile

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

What are top analysts saying about Logitech International S.A.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Logitech International S.A. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit