Preformed Line Products (NASDAQ:PLPC – Get Free Report) and Acorn Energy (OTCMKTS:ACFN – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
41.2% of Preformed Line Products shares are held by institutional investors. 35.1% of Preformed Line Products shares are held by company insiders. Comparatively, 35.1% of Acorn Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Preformed Line Products and Acorn Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Preformed Line Products | 6.70% | 9.69% | 7.09% |
| Acorn Energy | 56.00% | 78.08% | 28.31% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Preformed Line Products | $632.23 million | 1.54 | $37.09 million | $8.56 | 23.08 |
| Acorn Energy | $13.20 million | 5.24 | $6.29 million | $2.84 | 9.73 |
Preformed Line Products has higher revenue and earnings than Acorn Energy. Acorn Energy is trading at a lower price-to-earnings ratio than Preformed Line Products, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Preformed Line Products and Acorn Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Preformed Line Products | 0 | 1 | 0 | 0 | 2.00 |
| Acorn Energy | 0 | 0 | 0 | 0 | 0.00 |
Volatility and Risk
Preformed Line Products has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Acorn Energy has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.
Dividends
Preformed Line Products pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Acorn Energy pays an annual dividend of $0.14 per share and has a dividend yield of 0.5%. Preformed Line Products pays out 9.3% of its earnings in the form of a dividend. Acorn Energy pays out 4.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Acorn Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Preformed Line Products beats Acorn Energy on 8 of the 14 factors compared between the two stocks.
About Preformed Line Products
Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable, data communication, and other industries. The company offers optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was incorporated in 1947 and is headquartered in Mayfield Village, Ohio.
About Acorn Energy
Acorn Energy, Inc., together with its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates in two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, pumps, pumpjacks, light towers, turbines, compressors, fire pumps, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring and control products for cathodic protection systems utilized in gas pipelines for gas utilities market and pipeline operators. The company was incorporated in 1986 and is based in Wilmington, Delaware.
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