Head-To-Head Survey: Kemet Corporation (KEM) and Bel Fuse (BELFB)

Bel Fuse (NASDAQ: BELFB) and Kemet Corporation (NYSE:KEM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Bel Fuse and Kemet Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bel Fuse 0 1 1 0 2.50
Kemet Corporation 0 1 1 0 2.50

Bel Fuse currently has a consensus target price of $39.00, suggesting a potential upside of 44.44%. Kemet Corporation has a consensus target price of $18.13, suggesting a potential downside of 10.18%. Given Bel Fuse’s higher probable upside, analysts plainly believe Bel Fuse is more favorable than Kemet Corporation.

Earnings & Valuation

This table compares Bel Fuse and Kemet Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bel Fuse $492.63 million 0.66 $46.37 million $1.36 19.85
Kemet Corporation $846.86 million 1.14 $110.10 million $4.88 4.14

Kemet Corporation has higher revenue and earnings than Bel Fuse. Kemet Corporation is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

59.3% of Bel Fuse shares are held by institutional investors. Comparatively, 68.9% of Kemet Corporation shares are held by institutional investors. 8.8% of Bel Fuse shares are held by insiders. Comparatively, 3.9% of Kemet Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Bel Fuse has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Kemet Corporation has a beta of 3.55, suggesting that its stock price is 255% more volatile than the S&P 500.

Profitability

This table compares Bel Fuse and Kemet Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bel Fuse 3.44% 11.61% 4.38%
Kemet Corporation 33.25% 20.21% 4.53%

Dividends

Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. Kemet Corporation does not pay a dividend. Bel Fuse pays out 20.6% of its earnings in the form of a dividend.

Summary

Kemet Corporation beats Bel Fuse on 11 of the 14 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.

About Kemet Corporation

KEMET Corporation (KEMET) is a manufacturer of passive electronic components. The Company operates in two segments: Solid Capacitors, and Film and Electrolytic. The Solid Capacitors segment primarily produces tantalum, aluminum, polymer and ceramic capacitors. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors. The Film and Electrolytic Business Group produces film, paper and wet aluminum electrolytic capacitors. It also designs and produces EMI Filters. The Company’s product offerings include surface mount, which are attached directly to the circuit board; leaded capacitors, which are attached to the circuit board using lead wires, and chassis-mount and other pin-through-hole board-mount capacitors, which utilize attachment methods, such as screw terminal and snap-in. The Company sells its products to a range of original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers.

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