Ituran Location and Control Ltd. (US) (NASDAQ: ITRN) and Vectrus (NYSE:VEC) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
53.1% of Ituran Location and Control Ltd. (US) shares are held by institutional investors. Comparatively, 86.6% of Vectrus shares are held by institutional investors. 3.9% of Vectrus shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Ituran Location and Control Ltd. (US) and Vectrus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ituran Location and Control Ltd. (US)||18.99%||36.10%||22.09%|
Valuation & Earnings
This table compares Ituran Location and Control Ltd. (US) and Vectrus’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ituran Location and Control Ltd. (US)||$199.57 million||3.55||$32.13 million||$2.06||16.41|
|Vectrus||$1.19 billion||0.26||$23.65 million||$1.81||15.54|
Ituran Location and Control Ltd. (US) has higher earnings, but lower revenue than Vectrus. Vectrus is trading at a lower price-to-earnings ratio than Ituran Location and Control Ltd. (US), indicating that it is currently the more affordable of the two stocks.
Ituran Location and Control Ltd. (US) pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Vectrus does not pay a dividend. Ituran Location and Control Ltd. (US) pays out 46.6% of its earnings in the form of a dividend.
Risk and Volatility
Ituran Location and Control Ltd. (US) has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Vectrus has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Ituran Location and Control Ltd. (US) and Vectrus, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ituran Location and Control Ltd. (US)||0||2||0||0||2.00|
Ituran Location and Control Ltd. (US) presently has a consensus price target of $36.00, suggesting a potential upside of 6.51%. Vectrus has a consensus price target of $37.00, suggesting a potential upside of 31.53%. Given Vectrus’ stronger consensus rating and higher probable upside, analysts clearly believe Vectrus is more favorable than Ituran Location and Control Ltd. (US).
Ituran Location and Control Ltd. (US) Company Profile
Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.
Vectrus Company Profile
Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems.
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