Analyzing Tel-Instrument Electronics (OTCMKTS:TIKK) & Hubbell (HUBB)

Tel-Instrument Electronics (OTCMKTS:TIKK) and Hubbell (NYSE:HUBB) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Institutional & Insider Ownership

1.6% of Tel-Instrument Electronics shares are held by institutional investors. Comparatively, 86.6% of Hubbell shares are held by institutional investors. 28.1% of Tel-Instrument Electronics shares are held by insiders. Comparatively, 2.2% of Hubbell shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tel-Instrument Electronics and Hubbell, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tel-Instrument Electronics 0 0 0 0 N/A
Hubbell 0 3 4 0 2.57

Hubbell has a consensus target price of $134.00, suggesting a potential upside of 7.02%. Given Hubbell’s higher possible upside, analysts clearly believe Hubbell is more favorable than Tel-Instrument Electronics.

Profitability

This table compares Tel-Instrument Electronics and Hubbell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tel-Instrument Electronics -11.34% N/A -14.90%
Hubbell 8.04% 23.08% 8.10%

Earnings and Valuation

This table compares Tel-Instrument Electronics and Hubbell’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tel-Instrument Electronics $10.02 million 0.94 -$4.32 million N/A N/A
Hubbell $4.48 billion 1.53 $360.20 million $7.29 17.18

Hubbell has higher revenue and earnings than Tel-Instrument Electronics.

Dividends

Hubbell pays an annual dividend of $3.36 per share and has a dividend yield of 2.7%. Tel-Instrument Electronics does not pay a dividend. Hubbell pays out 46.1% of its earnings in the form of a dividend. Hubbell has raised its dividend for 2 consecutive years.

Volatility and Risk

Tel-Instrument Electronics has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Hubbell has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Summary

Hubbell beats Tel-Instrument Electronics on 12 of the 14 factors compared between the two stocks.

About Tel-Instrument Electronics

Tel-Instrument Electronics Corp. designs, manufactures, and sells avionics test and measurement solutions for the commercial air transport, general aviation, and government/military aerospace and defense markets in the United States and internationally. It operates in two segments, Avionics Government and Avionics Commercial. The company provides instruments to test, measure, calibrate, and repair a range of airborne navigation and communication equipment. Its products also include TS-4530A, an identification friend or foe test set; T-47/M5, a dual crypto test set; and AN/ARM-206, an intermediate level TACAN test set. In addition, it offers AN/USM-708 and AN/USM-719, which are communications/navigation radio frequency avionics flight line testers; TR-220, a test set that provides test capability for traffic and collision avoidance systems (TCAS), distance measuring equipment, and transponders; TR-36, a commercial navigation and communication test set that provide ramp testing; and TR-420, a ramp test set to test the operation of transponders and interrogators. Further, the company provides multifunction ramp test sets under the T-47NC, T-47NH, and T-47G names; TR-100AF, a rugged ramp test used to verify airborne TACAN equipment; and AN/APM-480A, a transponder, interrogator, and TCAS test set. It sells its products directly or through distributors. The company was founded in 1947 and is headquartered in East Rutherford, New Jersey.

About Hubbell

Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical and Power. The Electrical segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various high voltage test and measurement equipment, industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product oriented Internet sites; special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers; and high voltage products directly to its customers through sales engineers. The Power segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms, and civil construction and transportation industries. Hubbell Incorporated was founded in 1888 and is headquartered in Shelton, Connecticut.

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