Comparing Thermon Group (THR) & American Electric Technologies (AETI)

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American Electric Technologies (NASDAQ:AETI) and Thermon Group (NYSE:THR) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for American Electric Technologies and Thermon Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Electric Technologies 0 0 0 0 N/A
Thermon Group 0 1 3 0 2.75

Thermon Group has a consensus price target of $28.67, indicating a potential upside of 25.18%. Given Thermon Group’s higher probable upside, analysts clearly believe Thermon Group is more favorable than American Electric Technologies.

Institutional & Insider Ownership

31.2% of American Electric Technologies shares are owned by institutional investors. 31.4% of American Electric Technologies shares are owned by company insiders. Comparatively, 1.2% of Thermon Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares American Electric Technologies and Thermon Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Electric Technologies $47.13 million 0.12 -$2.22 million N/A N/A
Thermon Group $308.61 million 2.42 $11.91 million $0.99 23.13

Thermon Group has higher revenue and earnings than American Electric Technologies.

Volatility & Risk

American Electric Technologies has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Thermon Group has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares American Electric Technologies and Thermon Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Electric Technologies -9.80% -58.86% -12.81%
Thermon Group 3.45% 9.02% 4.61%

Summary

Thermon Group beats American Electric Technologies on 9 of the 11 factors compared between the two stocks.

About American Electric Technologies

American Electric Technologies, Inc. supplies power delivery solutions in the United States and internationally. It provides power distribution, power conversion, and automation and control systems that distribute and control the flow of electricity from the source to the mechanical device. The company's power distribution products include low and medium voltage switchgears, medium voltage arc-resistant switchgears, low and medium voltage motor control centers, bus ducts, fuse and switch products, and other related power distribution equipment; and power conversion solutions comprise alternating current variable frequency drive systems, analog systems, and digital silicon controlled rectifier (SCR) products. It also provides automation and control solutions for the management and control of power in a customer's application; power distribution centers that are used to house power distribution and conversion products; variable frequency drive and SCR houses for land drilling; and driller's cabins for land and offshore deployment. In addition, the company offers electrical power infrastructure commissioning and maintenance services; electrical and instrumentation construction, and installation services, including electrical and instrumentation turnarounds, maintenance, renovation, and new construction projects; and low and medium voltage start-up/commissioning, preventative maintenance, emergency call out, and breaker and switchgear refurbishment services. It serves the oil and gas, power generation and distribution, and marine and industrial markets. The company was founded in 1946 and is headquartered in Houston, Texas.

About Thermon Group

Thermon Group Holdings, Inc. provides thermal engineered industrial process heating solutions for process industries in the United States, Canada, Europe, and Asia. Its products include various electric heat tracing cables, steam tracing components, tubing bundles, and instrument and control products, as well as complementary product lines. The company offers self-regulating and power limiting heating cables, which automatically increase or decrease heat output as pipe temperature changes, as well as constant wattage heating cables; mineral insulated cables for generating high temperatures used in harsh environments; skin effect trace heaters, which could heat lines up to 15 miles long from a single power point; and heat traced tube bundles for environmental gas sampling systems. It also provides heat transfer compounds and steam tracers for steam tracing solutions; control and monitoring systems for electric tracing of pipes, tanks, hoppers, and instrument sampling systems; hopper heating modules, which are self-contained heaters for use in cement plants and fossil fuel power facilities; and turnkey solutions that provide solutions for heat tracing comprising design, optimization, planning, product supply, engineering services, system integration, installation, commissioning, and maintenance. In addition, the company offers heating, sensing, monitoring, and controlling tools; and equipment for temporary electric power distribution and lighting products used in energy infrastructure construction projects and maintenance/turnaround projects. The company offers its solutions to the oil and gas, chemical processing, and power generation markets through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. is headquartered in San Marcos, Texas.

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