Electro-Sensors (NASDAQ:ELSE – Get Free Report) and Thermon Group (NYSE:THR – 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 valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Risk and Volatility
Electro-Sensors has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Thermon Group has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.
Valuation and Earnings
This table compares Electro-Sensors and Thermon Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Electro-Sensors | $10.14 million | 2.65 | $310,000.00 | $0.09 | 84.67 |
| Thermon Group | $498.21 million | 3.53 | $53.51 million | $1.76 | 30.38 |
Thermon Group has higher revenue and earnings than Electro-Sensors. Thermon Group is trading at a lower price-to-earnings ratio than Electro-Sensors, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Electro-Sensors and Thermon Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Electro-Sensors | 3.02% | 2.10% | 1.98% |
| Thermon Group | 11.26% | 13.82% | 9.13% |
Institutional & Insider Ownership
11.7% of Electro-Sensors shares are owned by institutional investors. Comparatively, 99.8% of Thermon Group shares are owned by institutional investors. 13.3% of Electro-Sensors shares are owned by company insiders. Comparatively, 2.5% of Thermon Group shares are owned 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.
Analyst Recommendations
This is a summary of current ratings and price targets for Electro-Sensors and Thermon Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Electro-Sensors | 0 | 1 | 0 | 0 | 2.00 |
| Thermon Group | 0 | 5 | 1 | 0 | 2.17 |
Thermon Group has a consensus price target of $57.00, indicating a potential upside of 6.61%. Given Thermon Group’s stronger consensus rating and higher probable upside, analysts plainly believe Thermon Group is more favorable than Electro-Sensors.
Summary
Thermon Group beats Electro-Sensors on 12 of the 14 factors compared between the two stocks.
About Electro-Sensors
Electro-Sensors, Inc. engages in the manufacture and selling of industrial production monitoring and process control systems. Its products include shaft speed witches; wireless hazard monitoring; temperature sensor; slide gate and angle position; bearing sensors and belt alignment; and motor drive control. The company was founded by James P. Slattery in 1965 and is headquartered in Minnetonka, MN.
About Thermon Group
Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It offers heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services. The company also provides controls, monitoring, and software systems for the control and management of a heat trace system; environmental heating solutions under the Ruffneck, Norsemen, and Catadyne brands; process heating solutions under the Caloritech brand name; filtration solutions under the 3L Filters brand; rail and transit solutions under the Hellfire, Velocity, ArcticSense, and other brand names; and boilers under the Vapor Power, Precision Boilers, and Caloritech brands. In addition, it offers project services; transportation heating products, including track and switch heaters, accessories, control panels, rail heaters, gas blower accessories, and air curtains; transit heaters; and velocity heat products. Further, the company offers temporary power solutions; heating systems, such as engineered electric heat, explosion proof gas catalytic heaters, heaters for harshest environments, methane abatement, and engineered filtration system; electrically, steam, and fluid heated tubing bundles; and pre-insulated tubing and system accessories tubing bundles. It serves chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, energy transition/decarbonization, mining and mineral processing, maritime/shipbuilding, semiconductors, pharmaceutical and biotechnology, food and beverage, data centers, and renewables industries through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is headquartered in Austin, Texas.
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