Analyzing Advanced Energy Industries (AEIS) & Its Rivals

Advanced Energy Industries (NASDAQ:AEIS) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its competitors? We will compare Advanced Energy Industries to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Profitability

This table compares Advanced Energy Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Energy Industries	12.72%	24.95%	11.83%
Advanced Energy Industries Competitors	-160.23%	-30.21%	-6.88%

Insider and Institutional Ownership

99.7% of Advanced Energy Industries shares are held by institutional investors. Comparatively, 43.3% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 1.3% of Advanced Energy Industries shares are held by company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by company 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.

Valuation & Earnings

This table compares Advanced Energy Industries and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Advanced Energy Industries	$2.27 billion	$148.40 million	28.08
Advanced Energy Industries Competitors	$115.49 billion	$173.80 million	3.26

Advanced Energy Industries’ competitors have higher revenue and earnings than Advanced Energy Industries. Advanced Energy Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Advanced Energy Industries has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Advanced Energy Industries’ competitors have a beta of -0.30, suggesting that their average stock price is 130% less volatile than the S&P 500.

Dividends

Advanced Energy Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.2%. Advanced Energy Industries pays out 5.8% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 2.0% and pay out 69.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Advanced Energy Industries and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Energy Industries	0	3	10	0	2.77
Advanced Energy Industries Competitors	2049	7610	10441	662	2.47

Advanced Energy Industries currently has a consensus price target of $391.64, indicating a potential upside of 100.67%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 40.13%. Given Advanced Energy Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Advanced Energy Industries is more favorable than its competitors.

Summary

Advanced Energy Industries beats its competitors on 10 of the 15 factors compared.

About Advanced Energy Industries

Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.