Critical Review: Maxwell Technologies (MXWL) vs. Electro Scientific Industries (ESIO)

Maxwell Technologies (NASDAQ: MXWL) and Electro Scientific Industries (NASDAQ:ESIO) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Maxwell Technologies and Electro Scientific Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Maxwell Technologies $121.24 million 1.38 -$23.70 million ($1.19) -3.81
Electro Scientific Industries $161.02 million 4.75 -$37.40 million ($0.63) -35.62

Maxwell Technologies has higher revenue, but lower earnings than Electro Scientific Industries. Electro Scientific Industries is trading at a lower price-to-earnings ratio than Maxwell Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Maxwell Technologies has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, Electro Scientific Industries has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Maxwell Technologies and Electro Scientific Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxwell Technologies 0 3 2 0 2.40
Electro Scientific Industries 0 0 3 0 3.00

Maxwell Technologies currently has a consensus price target of $7.00, indicating a potential upside of 54.53%. Electro Scientific Industries has a consensus price target of $24.67, indicating a potential upside of 9.93%. Given Maxwell Technologies’ higher probable upside, equities research analysts plainly believe Maxwell Technologies is more favorable than Electro Scientific Industries.

Profitability

This table compares Maxwell Technologies and Electro Scientific Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxwell Technologies -34.18% -30.83% -21.80%
Electro Scientific Industries -9.00% -13.50% -8.93%

Institutional & Insider Ownership

45.9% of Maxwell Technologies shares are owned by institutional investors. Comparatively, 72.9% of Electro Scientific Industries shares are owned by institutional investors. 3.5% of Maxwell Technologies shares are owned by insiders. Comparatively, 6.2% of Electro Scientific Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Electro Scientific Industries beats Maxwell Technologies on 11 of the 13 factors compared between the two stocks.

Maxwell Technologies Company Profile

Maxwell Technologies, Inc. develops, manufactures and markets energy storage and power delivery products for transportation, industrial, information technology and other applications and microelectronic products for space and satellite applications. The Company offers three product lines: Ultracapacitors, High-Voltage Capacitors and Radiation-Hardened Microelectronic Products. The Company’s ultracapacitor cells and multi-cell packs, and modules provide energy storage and power delivery solutions for applications in multiple industries. The Company offers ultracapacitor cells with capacitances ranging from 1 to 3,400 farads. It designs and manufactures CONDIS high-voltage capacitors. These products include grading and coupling capacitors and electric voltage transformers. The Company’s radiation-hardened microelectronic products for satellites and spacecraft include single board computers and components, such as high-density memory and data conversion modules.

Electro Scientific Industries Company Profile

Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.

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