Analyzing Benchmark Electronics (NYSE:BHE) & BOE Varitronix (OTCMKTS:VARXF)

BOE Varitronix (OTCMKTS:VARXF) and Benchmark Electronics (NYSE:BHE) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Insider and Institutional Ownership

14.3% of BOE Varitronix shares are held by institutional investors. Comparatively, 92.3% of Benchmark Electronics shares are held by institutional investors. 2.1% of Benchmark Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares BOE Varitronix and Benchmark Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOE Varitronix	N/A	N/A	N/A	N/A	N/A
Benchmark Electronics	$2.75 billion	0.57	$64.32 million	$1.83	23.86

Benchmark Electronics has higher revenue and earnings than BOE Varitronix.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BOE Varitronix and Benchmark Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOE Varitronix	0	0	0	0	N/A
Benchmark Electronics	0	2	2	0	2.50

Benchmark Electronics has a consensus price target of $41.33, indicating a potential downside of 5.32%. Given Benchmark Electronics’ higher probable upside, analysts clearly believe Benchmark Electronics is more favorable than BOE Varitronix.

Profitability

This table compares BOE Varitronix and Benchmark Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BOE Varitronix	N/A	N/A	N/A
Benchmark Electronics	2.45%	7.17%	3.45%

Summary

Benchmark Electronics beats BOE Varitronix on 8 of the 8 factors compared between the two stocks.

About BOE Varitronix

BOE Varitronix Limited, an investment holding company, designs, manufactures, and sells liquid crystal display and related products in the People's Republic of China, Europe, the United States, Korea, and internationally. It primarily provides thin film transistor products. The company offers display products for use in automotive applications in digital instrument cluster display, center information display, HUD, rear view, and side view E-mirror products; and products for use in industrial applications, such as white goods, home automation, and other products. In addition, the company engages in the marketing and sales consulting activities. BOE Varitronix Limited was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. BOE Varitronix Limited is a subsidiary of BOE Technology Group Company Limited.

About Benchmark Electronics

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also offers electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company provides precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.