Head-To-Head Analysis: EnerSys (ENS) & Houston Wire & Cable (HWCC)

EnerSys (NYSE: ENS) and Houston Wire & Cable (NASDAQ:HWCC) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Volatility & Risk

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EnerSys has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Houston Wire & Cable has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Institutional and Insider Ownership

97.2% of EnerSys shares are held by institutional investors. Comparatively, 65.1% of Houston Wire & Cable shares are held by institutional investors. 1.4% of EnerSys shares are held by insiders. Comparatively, 3.9% of Houston Wire & Cable shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares EnerSys and Houston Wire & Cable’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnerSys $2.37 billion 1.23 $160.21 million $4.75 14.66
Houston Wire & Cable $317.70 million 0.41 -$220,000.00 $0.15 53.00

EnerSys has higher revenue and earnings than Houston Wire & Cable. EnerSys is trading at a lower price-to-earnings ratio than Houston Wire & Cable, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for EnerSys and Houston Wire & Cable, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnerSys 0 1 2 0 2.67
Houston Wire & Cable 0 0 1 0 3.00

EnerSys presently has a consensus target price of $78.00, indicating a potential upside of 12.04%. Houston Wire & Cable has a consensus target price of $8.00, indicating a potential upside of 0.63%. Given EnerSys’ higher possible upside, equities research analysts plainly believe EnerSys is more favorable than Houston Wire & Cable.

Profitability

This table compares EnerSys and Houston Wire & Cable’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnerSys 3.94% 18.02% 8.49%
Houston Wire & Cable -0.07% 2.68% 1.29%

Dividends

EnerSys pays an annual dividend of $0.70 per share and has a dividend yield of 1.0%. Houston Wire & Cable does not pay a dividend. EnerSys pays out 14.7% of its earnings in the form of a dividend.

Summary

EnerSys beats Houston Wire & Cable on 12 of the 16 factors compared between the two stocks.

About EnerSys

EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries. Its segments based on geographic regions consist of Americas, which consists of North and South America; EMEA, which includes Europe, the Middle East and Africa, and Asia, which includes Asia, Australia and Oceania. The Company’s product lines include reserve power and motive power products. Its Reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries. The Company’s motive power products are used to provide power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications. They are used as mining equipment, diesel locomotive starting and other rail equipment.

About Houston Wire & Cable

Houston Wire & Cable Company is a holding company. The Company is engaged in provision of electrical and mechanical wire and cable, hardware and related services. It operates through sales of wire and cable, hardware and related services segment in the United States market. Its cable management program includes purchasing and storing inventory for product availability. The Company offers products in categories of wire and cable, including continuous and interlocked armor cable; control and power cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; lead and high temperature cable; medium voltage cable; premise and category wire and cable; primary and secondary aluminum distribution cable, and synthetic fiber rope slings, chain, shackles, and other related hardware. The Company also offers private branded products, including its brand LifeGuard, a low smoke zero halogen (LSZH) cable. Its products are used in repair and replacement work.

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