Sun Hydraulics (NASDAQ: SNHY) and ARC Group WorldWide (NASDAQ:ARCW) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Sun Hydraulics pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. ARC Group WorldWide does not pay a dividend. Sun Hydraulics pays out 22.5% of its earnings in the form of a dividend.
This is a summary of recent recommendations for Sun Hydraulics and ARC Group WorldWide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARC Group WorldWide||0||1||0||0||2.00|
Sun Hydraulics currently has a consensus target price of $63.00, suggesting a potential upside of 20.30%. ARC Group WorldWide has a consensus target price of $4.50, suggesting a potential upside of 100.00%. Given ARC Group WorldWide’s higher possible upside, analysts plainly believe ARC Group WorldWide is more favorable than Sun Hydraulics.
This table compares Sun Hydraulics and ARC Group WorldWide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARC Group WorldWide||-24.38%||-30.37%||-10.51%|
Volatility and Risk
Sun Hydraulics has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, ARC Group WorldWide has a beta of 3.26, indicating that its share price is 226% more volatile than the S&P 500.
Valuation and Earnings
This table compares Sun Hydraulics and ARC Group WorldWide’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sun Hydraulics||$342.84 million||4.81||$31.55 million||$1.60||32.73|
|ARC Group WorldWide||$99.07 million||0.42||-$10.19 million||($0.19)||-11.84|
Sun Hydraulics has higher revenue and earnings than ARC Group WorldWide. ARC Group WorldWide is trading at a lower price-to-earnings ratio than Sun Hydraulics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
70.1% of Sun Hydraulics shares are owned by institutional investors. Comparatively, 23.0% of ARC Group WorldWide shares are owned by institutional investors. 10.0% of Sun Hydraulics shares are owned by insiders. Comparatively, 3.6% of ARC Group WorldWide shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Sun Hydraulics beats ARC Group WorldWide on 12 of the 15 factors compared between the two stocks.
Sun Hydraulics Company Profile
Sun Hydraulics Corporation designs, manufactures, and sells screw-in hydraulic cartridge valves, manifolds, and integrated fluid power packages and subsystems used in hydraulic systems worldwide. The company operates through two segments, Hydraulics and Electronics. Its screw-in hydraulic cartridge valves and manifolds control force, speed, and motion as integral components in fluid power systems. The company offers various screw-in hydraulic cartridge valves, including electrically actuated and non-electrically actuated products; electro-hydraulics; manifolds that are machined to create threaded cavities and channels; and integrated package solutions, which consists of multiple cartridge valves assembled into a custom designed manifolds for industrial and mobile hydraulics markets under the Sun Hydraulics brand name. It also designs and manufactures electronic control, display, and instrumentation solutions for recreational and off-highway vehicles, and stationary and power generation equipment under the Enovation Controls, Murphy, and Zero Off brand names; and digital and analog electronic controller products for the fluid power industry under the HCT brand name. The company sells its hydraulic products primarily through independent fluid power channel partners, as well as directly to original equipment manufacturer customers and other companies in the hydraulics industry; and electronic products to original equipment manufacturer customers. Sun Hydraulics Corporation was founded in 1970 and is headquartered in Sarasota, Florida.
ARC Group WorldWide Company Profile
ARC Group Worldwide, Inc. is a manufacturing company. The Company has two segments: Precision Components Group, 3DMT Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling.
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