Helios Technologies (NASDAQ:HLIO) and Shengkai Innovations (OTCMKTS:VALV) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Risk and Volatility
Helios Technologies has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Shengkai Innovations has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.
Helios Technologies pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Shengkai Innovations does not pay a dividend. Helios Technologies pays out 15.7% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Helios Technologies and Shengkai Innovations’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Helios Technologies||$508.05 million||2.90||$46.73 million||$2.30||20.00|
Helios Technologies has higher revenue and earnings than Shengkai Innovations.
Insider and Institutional Ownership
84.6% of Helios Technologies shares are owned by institutional investors. 6.3% of Helios Technologies shares are owned by insiders. Comparatively, 0.2% of Shengkai Innovations shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Helios Technologies and Shengkai Innovations, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Helios Technologies currently has a consensus target price of $44.50, indicating a potential downside of 3.26%. Given Helios Technologies’ higher possible upside, equities analysts clearly believe Helios Technologies is more favorable than Shengkai Innovations.
This table compares Helios Technologies and Shengkai Innovations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Helios Technologies beats Shengkai Innovations on 9 of the 10 factors compared between the two stocks.
About Helios Technologies
Helios Technologies, Inc. develops, manufactures, and sells solutions for the hydraulics and electronics markets. The company operates through two segments, Hydraulics and Electronics. The Hydraulics segment offers screw-in hydraulic cartridge valves, electro-hydraulics, manifolds, and integrated package solutions for the industrial and mobile hydraulics markets; quick release hydraulic coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic, pneumatic, electronic, and instrumentation solutions to a range of industries, including agriculture, industrial, mining, and material handling. The Electronics segment designs and manufactures electronic control, display, and instrumentation solutions for recreational and off-highway vehicles, as well as stationary and power generation equipment; and electronic controller products. The company sells its hydraulic products primarily through value-add distributors, as well as directly to original equipment manufacturer customers; and electronic products to original equipment manufacturer customers. It provides its products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Sun Hydraulics Corporation. Helios Technologies, Inc. was founded in 1970 and is headquartered in Sarasota, Florida.
About Shengkai Innovations
Shengkai Innovations, Inc., together with its subsidiaries, designs, manufactures, and distributes ceramic valves for industrial use in the People's Republic of China. The company provides ceramic valves in various categories, including gate, ball, back, adjustable, cut-off, and special valves. It also offers various services related to industrial ceramic valves consisting of manufacture, installation, and maintenance of general industrial ceramic valves, as well as the design and manufacture of a range of non-standard ceramic valves. The company sells its products through direct sales personnel and agents to electric power, petrochemical, chemical, aluminum, and metallurgy industries. Shengkai Innovations, Inc. also exports its products to Europe, North America, the Middle East, and the Asia-Pacific region. The company is headquartered in Tianjin, the People's Republic of China.
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