Houston Wire & Cable (NASDAQ: HWCC) and Revolution Lighting Technologies (NASDAQ:RVLT) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitabiliy, valuation, risk and analyst recommendations.

Dividends

Houston Wire & Cable pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Revolution Lighting Technologies does not pay a dividend. Houston Wire & Cable pays out -7.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

70.8% of Houston Wire & Cable shares are held by institutional investors. Comparatively, 29.4% of Revolution Lighting Technologies shares are held by institutional investors. 4.0% of Houston Wire & Cable shares are held by company insiders. Comparatively, 42.0% of Revolution Lighting Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Houston Wire & Cable and Revolution Lighting Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Houston Wire & Cable $275.64 million 0.37 -$275,999.00 ($0.39) -15.77
Revolution Lighting Technologies $175.10 million 0.89 $10.00 million ($0.14) -53.28

Revolution Lighting Technologies has higher revenue, but lower earnings than Houston Wire & Cable. Revolution Lighting Technologies is trading at a lower price-to-earnings ratio than Houston Wire & Cable, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Houston Wire & Cable and Revolution Lighting Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Houston Wire & Cable 0 0 1 0 3.00
Revolution Lighting Technologies 0 0 1 0 3.00

Houston Wire & Cable currently has a consensus target price of $8.00, indicating a potential upside of 30.08%. Revolution Lighting Technologies has a consensus target price of $13.00, indicating a potential upside of 74.26%. Given Revolution Lighting Technologies’ higher probable upside, analysts clearly believe Revolution Lighting Technologies is more favorable than Houston Wire & Cable.

Profitability

This table compares Houston Wire & Cable and Revolution Lighting Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Houston Wire & Cable -2.28% -4.09% -2.33%
Revolution Lighting Technologies -16.21% -16.08% -9.25%

Volatility & Risk

Houston Wire & Cable has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Revolution Lighting Technologies has a beta of 3.75, suggesting that its stock price is 275% more volatile than the S&P 500.

Summary

Houston Wire & Cable beats Revolution Lighting Technologies on 7 of the 13 factors compared between the two stocks.

About Houston Wire & Cable

Houston Wire & Cable Company is a holding company. The Company is engaged in provision of electrical and mechanical wire and cable, hardware and related services. It operates through sales of wire and cable, hardware and related services segment in the United States market. Its cable management program includes purchasing and storing inventory for product availability. The Company offers products in categories of wire and cable, including continuous and interlocked armor cable; control and power cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; lead and high temperature cable; medium voltage cable; premise and category wire and cable; primary and secondary aluminum distribution cable, and synthetic fiber rope slings, chain, shackles, and other related hardware. The Company also offers private branded products, including its brand LifeGuard, a low smoke zero halogen (LSZH) cable. Its products are used in repair and replacement work.

About Revolution Lighting Technologies

Revolution Lighting Technologies, Inc. designs, manufactures, markets and sells commercial grade light-emitting diode (LED) and conventional lighting fixtures. The Company operates in Lighting Products and Solutions (principally LED fixtures and lamps) segment. The Company’s products are used for outdoor and indoor applications, LED-based signage, channel-letter and contour lighting products, LED replacement lamps and commercial grade smart grid control systems. It sells its LED products under the RVLT, Seesmart, Lumificient, Value Lighting, Array and CMG brand names. The Company’s commercial lamps and fixtures products include the commercial indoor and outdoor lighting products, such as linear tube lighting, multi-family lighting, commercial troffer lighting and street lighting. It caters to municipal and commercial markets, which include industrial, hospitality, institutional, educational, healthcare and signage markets in the United States, Canada and internationally.

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