Reviewing Belden (BDC) & Corning (GLW)

Belden (NYSE: BDC) and Corning (NYSE:GLW) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Volatility & Risk

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Belden has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Insider & Institutional Ownership

72.9% of Corning shares are held by institutional investors. 1.3% of Belden shares are held by insiders. Comparatively, 0.5% of Corning shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Belden and Corning’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Belden $2.39 billion 1.21 $93.21 million $5.35 12.83
Corning $10.12 billion 2.34 -$497.00 million $1.72 16.05

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

Dividends

Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Corning pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Belden pays out 3.7% of its earnings in the form of a dividend. Corning pays out 41.9% 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. Corning has increased its dividend for 7 consecutive years. Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Belden and Corning’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Belden 3.90% 18.20% 6.97%
Corning -4.91% 11.63% 6.29%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Belden and Corning, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Belden 0 1 7 0 2.88
Corning 2 4 4 0 2.20

Belden presently has a consensus price target of $91.80, indicating a potential upside of 33.72%. Corning has a consensus price target of $30.78, indicating a potential upside of 11.51%. Given Belden’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Belden is more favorable than Corning.

Summary

Belden beats Corning on 11 of the 17 factors compared between the two stocks.

Belden Company Profile

Belden Inc. designs, manufactures, and markets signal transmission solutions worldwide. It operates through Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions segments. The Broadcast Solutions segment offers camera solutions, production switchers, server and storage systems for instant replay applications, interfaces and routers, monitoring systems, in-home network systems, playout systems, outside plant connectivity products, and other cable, and connectivity products. The Enterprise Solutions segment provides copper cable and connectivity solutions, fiber cable and connectivity solutions, and racks and enclosures; and power, cooling, and airflow management products for mission-critical data center operations. The Industrial Solutions segment offers infrastructure components and on-machine connectivity systems, including industrial and input/output (I/O) connectors, industrial cables, IP and networking cables, I/O modules, distribution boxes, ruggedized controls and sensors, customer specific wiring solutions, and controllers and sensors for use in industrial automation applications. The Network Solutions provides foundational controls for protecting enterprises against cyberattacks, automating IT regulatory compliance and improving operational efficiency; and software and services that protect against cyberattacks and data breaches with integrated security controls that discover assets, harden configurations, identify vulnerabilities and detect threats. It sells its products to distributors, end-users, installers, and original equipment manufacturers. The company was formerly known as Belden CDT Inc. and changed its name to Belden Inc. in May 2007. Belden Inc. was founded in 1902 and is based in St. Louis, Missouri.

Corning Company Profile

Corning Incorporated manufactures and sells specialty glasses, ceramics, and related materials in North America, the Asia Pacific, Europe, and internationally. The company operates through five segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. The Display Technologies segment manufactures glass substrates for liquid crystal displays (LCDs) used in LCD televisions, notebook computers, and flat panel desktop monitors. The Optical Communications segment manufactures optical fiber and cable; and hardware and equipment products comprising cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for various carrier network applications. This segment also offers subscriber demarcation, connection and protection devices, various digital subscriber line passive solutions, and outside plant enclosures; and coaxial RF interconnects for the cable television industry and microwave applications. The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, and fluoride crystals. The Life Sciences segment manufactures and supplies scientific laboratory products consisting of consumables, such as plastic vessels, specialty surfaces, and media and serum, as well as general labware and equipment for cell culture research, bioprocessing, genomics, drug discovery, microbiology, and chemistry. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.

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