Amphenol (NYSE:APH) and Kimball Electronics (NASDAQ:KE) Critical Review

Kimball Electronics (NASDAQ:KE) and Amphenol (NYSE:APH) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Institutional & Insider Ownership

76.0% of Kimball Electronics shares are held by institutional investors. Comparatively, 97.0% of Amphenol shares are held by institutional investors. 2.8% of Kimball Electronics shares are held by company insiders. Comparatively, 1.4% of Amphenol shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Kimball Electronics and Amphenol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimball Electronics	1.95%	4.41%	2.35%
Amphenol	17.73%	39.87%	14.80%

Risk and Volatility

Kimball Electronics has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Amphenol has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Kimball Electronics and Amphenol, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimball Electronics	0	2	2	1	2.80
Amphenol	0	1	14	2	3.06

Kimball Electronics currently has a consensus price target of $32.00, indicating a potential upside of 17.35%. Amphenol has a consensus price target of $96.34, indicating a potential upside of 14.57%. Given Kimball Electronics’ higher possible upside, research analysts clearly believe Kimball Electronics is more favorable than Amphenol.

Valuation and Earnings

This table compares Kimball Electronics and Amphenol”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimball Electronics	$1.43 billion	0.46	$27.96 million	$1.13	24.13
Amphenol	$23.09 billion	8.98	$4.27 billion	$2.00	42.05

Amphenol has higher revenue and earnings than Kimball Electronics. Kimball Electronics is trading at a lower price-to-earnings ratio than Amphenol, indicating that it is currently the more affordable of the two stocks.

Summary

Amphenol beats Kimball Electronics on 13 of the 15 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

About Amphenol

Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.