Contrasting Rexel (OTCMKTS:RXLSF) and Taitron Components (NASDAQ:TAIT)

Taitron Components (NASDAQ:TAIT) and Rexel (OTCMKTS:RXLSF) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

18.1% of Taitron Components shares are owned by institutional investors. Comparatively, 51.4% of Rexel shares are owned by institutional investors. 62.1% of Taitron Components shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Taitron Components and Rexel’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taitron Components	$6.11 million	3.12	$1.85 million	$0.32	9.91
Rexel	N/A	N/A	N/A	$0.76	34.46

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

Profitability

This table compares Taitron Components and Rexel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taitron Components	30.21%	10.97%	10.26%
Rexel	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for Taitron Components and Rexel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taitron Components	0	0	0	0	N/A
Rexel	0	0	0	0	N/A

Dividends

Taitron Components pays an annual dividend of $0.20 per share and has a dividend yield of 6.3%. Rexel pays an annual dividend of $0.75 per share and has a dividend yield of 2.9%. Taitron Components pays out 62.5% of its earnings in the form of a dividend. Rexel pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taitron Components is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Taitron Components beats Rexel on 7 of the 10 factors compared between the two stocks.

About Taitron Components

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. The company distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. It also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. The company serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. Taitron Components Incorporated has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. The company was incorporated in 1989 and is headquartered in Valencia, California.

About Rexel

Rexel S.A., together with its subsidiaries, engages in distribution of low and ultra-low voltage electrical products and services for the residential, commercial, and industrial markets in France, Europe, North America, and Asia-Pacific. The company offers smart cameras, sensors, controllers, and monitoring software; light sources, lights, and control switches; climate control products, including heat pumps, air conditioning, and water heaters; fire alarms, surveillance equipment, access controls devices, and emergency lightings; and connection cables, and switches and routers, as well as enclosures, mounts, and racks. It also provides solar modules and inverters; connected lighting, intelligent home system, home control touch screen, and smart thermostat products; residential chargers, commercial stations, and charging cables for electric vehicles; electric motors, variable speed drives, programmable logic controllers, and computers and operator interface; and fastening systems, electrical power and control, and valves and instrumentation products. The company offers products, services, and solutions in the fields of technical supply, automation, and energy management related to the construction, renovation, maintenance, and production. It operates in 21 countries. The company was founded in 1967 and is headquartered in Paris, France.