Analyzing Methode Electronics (NYSE:MEI) and Iveda Solutions (NASDAQ:IVDA)

Iveda Solutions (NASDAQ:IVDA) and Methode Electronics (NYSE:MEI) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Insider and Institutional Ownership

4.3% of Iveda Solutions shares are held by institutional investors. Comparatively, 95.5% of Methode Electronics shares are held by institutional investors. 5.1% of Iveda Solutions shares are held by company insiders. Comparatively, 1.9% of Methode Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Iveda Solutions and Methode Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iveda Solutions	$4.57 million	0.78	-$3.20 million	($0.54)	-0.53
Methode Electronics	$1.02 billion	0.47	-$35.70 million	($1.04)	-12.87

Iveda Solutions has higher earnings, but lower revenue than Methode Electronics. Methode Electronics is trading at a lower price-to-earnings ratio than Iveda Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Iveda Solutions and Methode Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iveda Solutions	1	0	0	0	1.00
Methode Electronics	1	3	2	0	2.17

Methode Electronics has a consensus target price of $22.00, suggesting a potential upside of 64.42%. Given Methode Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Methode Electronics is more favorable than Iveda Solutions.

Risk and Volatility

Iveda Solutions has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Methode Electronics has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iveda Solutions	-69.24%	-63.92%	-46.83%
Methode Electronics	-3.52%	-5.63%	-2.94%

Summary

Methode Electronics beats Iveda Solutions on 9 of the 14 factors compared between the two stocks.

About Iveda Solutions

Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States and Taiwan. The company offers IvedaAI, a deep-learning video analytics software and Sentir Video, a video surveillance solution for various kinds of applications. It also provides Cerebro IoT Platform, a software technology platform that integrates a multitude of disparate systems for central access and management of applications, subsystems, and devices, and IvedaSPS, a smart power solution utilizing in Cerebro IoT platform, and IvedaXpress, a system for pre-existing IP cameras and AI analytics for servers and IT department. In addition, the company offers Iveda Smart UVC, an AI vent for irradiating UV light and Iveda drone to perform certain functions from an aerial view. Further, it offers Utilus smart pole solution that consists of power and Internet with a communication network for the access and management of sensors and devices, as well as provides utility cabin, IoT sensors and devices and LAN switch products. The company serves airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and safe city projects. Iveda Solutions, Inc. was founded in 2003 and is based in Mesa, Arizona.

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.