Knowles Corporation (NYSE: KN) and EMC (NYSE:EMC) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
79.9% of EMC shares are owned by institutional investors. 2.2% of Knowles Corporation shares are owned by insiders. Comparatively, 0.4% of EMC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Knowles Corporation and EMC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knowles Corporation currently has a consensus target price of $19.33, indicating a potential upside of 16.75%. Given Knowles Corporation’s higher probable upside, analysts clearly believe Knowles Corporation is more favorable than EMC.
This table compares Knowles Corporation and EMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Knowles Corporation and EMC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Knowles Corporation||$867.60 million||1.71||$141.10 million||$0.02||828.41|
Knowles Corporation has higher revenue and earnings than EMC. EMC is trading at a lower price-to-earnings ratio than Knowles Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Knowles Corporation has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, EMC has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Knowles Corporation does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. EMC has increased its dividend for 3 consecutive years.
EMC beats Knowles Corporation on 9 of the 14 factors compared between the two stocks.
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.
EMC Company Profile
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.
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