American Superconductor Corporation (NASDAQ: AMSC) and General Cable Corporation (NYSE:BGC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Institutional & Insider Ownership
35.2% of American Superconductor Corporation shares are held by institutional investors. Comparatively, 98.9% of General Cable Corporation shares are held by institutional investors. 2.6% of American Superconductor Corporation shares are held by insiders. Comparatively, 1.8% of General Cable Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares American Superconductor Corporation and General Cable Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Superconductor Corporation||$70.77 million||1.32||-$21.56 million||($2.14)||-2.28|
|General Cable Corporation||$3.70 billion||0.26||$209.90 million||($3.57)||-5.38|
General Cable Corporation has higher revenue and earnings than American Superconductor Corporation. General Cable Corporation is trading at a lower price-to-earnings ratio than American Superconductor Corporation, indicating that it is currently the more affordable of the two stocks.
General Cable Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. American Superconductor Corporation does not pay a dividend. General Cable Corporation pays out -20.2% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for American Superconductor Corporation and General Cable Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Superconductor Corporation||0||1||5||0||2.83|
|General Cable Corporation||0||2||0||0||2.00|
American Superconductor Corporation presently has a consensus price target of $7.33, suggesting a potential upside of 50.27%. Given American Superconductor Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe American Superconductor Corporation is more favorable than General Cable Corporation.
This table compares American Superconductor Corporation and General Cable Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Superconductor Corporation||-45.60%||-54.39%||-32.07%|
|General Cable Corporation||-4.80%||13.47%||1.10%|
Volatility & Risk
American Superconductor Corporation has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, General Cable Corporation has a beta of 2.84, suggesting that its share price is 184% more volatile than the S&P 500.
General Cable Corporation beats American Superconductor Corporation on 9 of the 15 factors compared between the two stocks.
American Superconductor Corporation Company Profile
American Superconductor Corporation (AMSC) is a provider of megawatt-scale solutions. The Company operates through two segments: Wind and Grid. Through the Company’s Windtec Solutions brand, the Wind business segment enables manufacturers to field wind turbines. Through the Company’s Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power. AMSC supplies power electronics and control systems, licenses its engineered wind turbine designs and provides customer support services to wind turbine manufacturers. The Company provides a range of power electronics and software-based control systems. AMSC provides transmission planning services that enable it to identify power grid congestion and other risks. The Company also sells grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems.
General Cable Corporation Company Profile
General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.
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