Critical Analysis: Latch (NASDAQ:LTCH) & Benchmark Electronics (NYSE:BHE)

Latch (NASDAQ:LTCH) and Benchmark Electronics (NYSE:BHE) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Latch and Benchmark Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latch	0	0	0	0	0.00
Benchmark Electronics	0	0	3	0	3.00

Benchmark Electronics has a consensus target price of $91.00, indicating a potential upside of 10.84%. Given Benchmark Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Benchmark Electronics is more favorable than Latch.

Profitability

This table compares Latch and Benchmark Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latch	N/A	N/A	N/A
Benchmark Electronics	1.89%	7.28%	3.81%

Valuation & Earnings

This table compares Latch and Benchmark Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latch	$48.39 million	0.65	-$162.34 million	($0.31)	-0.61
Benchmark Electronics	$2.66 billion	1.11	$24.85 million	$1.47	55.85

Benchmark Electronics has higher revenue and earnings than Latch. Latch is trading at a lower price-to-earnings ratio than Benchmark Electronics, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Latch has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Insider and Institutional Ownership

0.4% of Latch shares are held by institutional investors. Comparatively, 92.3% of Benchmark Electronics shares are held by institutional investors. 21.9% of Latch shares are held by insiders. Comparatively, 1.1% of Benchmark Electronics 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.

Summary

Benchmark Electronics beats Latch on 12 of the 13 factors compared between the two stocks.

About Latch

Latch, Inc. operates as an enterprise technology company in the United States and Canada. The company offers LatchOS, an operating system that extends smart access, delivery and guest management, smart home and sensors, connectivity, and personalization and services. Its software products include Latch Resident Mobile Applications, Latch Manager Web, and the Latch Manager Mobile Applications. The company also offers hardware devices that include M, C, and R series door-mounted access control products; Latch Intercom, which integrates into the Latch core access systems and allows audio and video calls for remote unlocking; Latch Camera, a dome camera; Latch Hub, a connectivity solution that enables smart access, smart home, and sensor devices at various buildings; and Latch Leak Detector, a solution to enable leak prevention, detection, and resolution for building owners and residents. In addition, it provides NFC unlock on Android that allows the user to unlock their door without even opening their phone; Latch Visitor Express, a contactless visitor entry system; and LatchID, an identification system. The company is headquartered in New York, New York.

About Benchmark Electronics

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also offers electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company provides precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.