Critical Comparison: Methode Electronics (NYSE:MEI) versus EnSync (OTCMKTS:ESNC)

EnSync (OTCMKTS:ESNC) and Methode Electronics (NYSE:MEI) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Risk & Volatility

EnSync has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Methode Electronics has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EnSync	N/A	N/A	N/A
Methode Electronics	-8.57%	-2.82%	-1.52%

Institutional & Insider Ownership

95.5% of Methode Electronics shares are owned by institutional investors. 14.8% of EnSync shares are owned by insiders. Comparatively, 1.4% of Methode Electronics shares are owned by 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 and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EnSync	N/A	N/A	N/A	N/A	N/A
Methode Electronics	$1.11 billion	0.29	-$123.30 million	($2.61)	-3.50

EnSync has higher earnings, but lower revenue than Methode Electronics.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for EnSync and Methode Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EnSync	0	0	0	0	0.00
Methode Electronics	0	1	1	0	2.50

Methode Electronics has a consensus target price of $10.50, suggesting a potential upside of 15.11%. Given Methode Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Methode Electronics is more favorable than EnSync.

About EnSync

EnSync, Inc., together with its subsidiaries, develops, licenses, and manufactures energy management systems solutions for the residential and commercial energy systems, and independent utility energy systems markets in the United States and internationally. The company's products include Matrix energy management, an energy control system for the commercial and residential energy systems markets; Home Energy System for property developers and residential customers; and DER SuperModule system, a self-contained DER system that integrates with renewable generation, customer load, and grid interconnection for deploying the least expensive, highest value, and most reliable electricity. Its products also comprise DER Flex Internet of energy control platform, a software platform that seamlessly connects to DERs; True Peer-to-PeerTM energy exchange technology; and Hybrid energy storage system. The company was formerly known as ZBB Energy Corporation and changed its name to EnSync, Inc. in August 2015. EnSync, Inc. was founded in 1986 and is headquartered in Menomonee Falls, Wisconsin.

About Methode Electronics

Methode Electronics, Inc. designs, engineers, and produces mechatronic products worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers. Its products include integrated center consoles, hidden and ergonomic switches, transmission lead-frames, complex insert molded solutions, LED-based lighting solutions, and sensors, which incorporate magneto-elastic sensing, eddy current, or other sensing technologies that monitor the operation or status of a component or system. The Industrial segment manufactures external lighting solutions comprising driving, work, and signal lights; industrial safety radio remote controls; braided flexible cables; current-carrying laminated and powder-coated busbars; high-voltage high current connector and contracts; custom power-product assemblies, such as PowerRail solution; and high-current low-voltage flexible power cabling systems that are used in aerospace, cloud computing, commercial vehicles, construction equipment, industrial, military, power conversion, and transportation markets and applications. The Interface segment provides various copper-based transceivers and related accessories for the cloud computing hardware equipment and telecommunications broadband equipment markets; user interface solutions for the appliance, commercial food service, and point-of-sale equipment markets; and fluid-level sensors for the marine/recreational vehicle and sump pump markets. The Medical segment offers Dabir Surfaces, a surface support technology aimed at pressure injury prevention for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. Methode Electronics, Inc. was incorporated in 1946 and is headquartered in Chicago, Illinois.