Comparing Methode Electronics (MEI) & Its Rivals

Methode Electronics (NYSE:MEI) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its rivals? We will compare Methode Electronics to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Methode Electronics and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Methode Electronics	1	2	2	1	2.50
Methode Electronics Competitors	2055	7629	10462	667	2.47

Methode Electronics currently has a consensus target price of $22.00, suggesting a potential upside of 73.31%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 32.78%. Given Methode Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Methode Electronics is more favorable than its rivals.

Valuation & Earnings

This table compares Methode Electronics and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Methode Electronics	$1.02 billion	-$35.70 million	-12.21
Methode Electronics Competitors	$115.02 billion	$172.92 million	4.71

Methode Electronics’ rivals have higher revenue and earnings than Methode Electronics. Methode Electronics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

95.5% of Methode Electronics shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 1.9% of Methode Electronics shares are owned by insiders. Comparatively, 16.3% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Methode Electronics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Methode Electronics	-3.52%	-5.63%	-2.94%
Methode Electronics Competitors	-139.61%	-22.08%	-6.31%

Volatility & Risk

Methode Electronics has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Methode Electronics’ rivals have a beta of -0.30, meaning that their average share price is 130% less volatile than the S&P 500.

Dividends

Methode Electronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Methode Electronics pays out -19.2% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 69.4% of their earnings in the form of a dividend.

Summary

Methode Electronics beats its rivals on 9 of the 15 factors compared.

About Methode Electronics

Methode Electronics designs and manufactures engineered components and subsystems for automotive, industrial and other markets. Its products include electronic controls, sensors, switches, lighting, power distribution systems and custom electrical assemblies. In the automotive market, the company supplies products used in vehicle interiors and exteriors, including lighting, control interfaces and electronic systems. Its industrial offerings include power products, interface panels, wiring and other electrical solutions for equipment and commercial vehicles.