IEC Electronics Corp (NYSE: IEC) and Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Valuation & Earnings

This table compares IEC Electronics Corp and Alpha and Omega Semiconductor Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IEC Electronics Corp $97.25 million 0.45 $3.44 million N/A N/A
Alpha and Omega Semiconductor Limited $383.34 million 0.95 $40.01 million $0.56 27.18

Alpha and Omega Semiconductor Limited has higher revenue and earnings than IEC Electronics Corp.

Institutional & Insider Ownership

70.0% of Alpha and Omega Semiconductor Limited shares are held by institutional investors. 21.7% of Alpha and Omega Semiconductor Limited 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for IEC Electronics Corp and Alpha and Omega Semiconductor Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IEC Electronics Corp 0 1 2 0 2.67
Alpha and Omega Semiconductor Limited 0 1 3 0 2.75

IEC Electronics Corp currently has a consensus price target of $5.10, suggesting a potential upside of 19.44%. Alpha and Omega Semiconductor Limited has a consensus price target of $26.00, suggesting a potential upside of 70.83%. Given Alpha and Omega Semiconductor Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Alpha and Omega Semiconductor Limited is more favorable than IEC Electronics Corp.

Profitability

This table compares IEC Electronics Corp and Alpha and Omega Semiconductor Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IEC Electronics Corp 3.04% 24.24% 6.33%
Alpha and Omega Semiconductor Limited 3.61% 4.76% 3.71%

Summary

Alpha and Omega Semiconductor Limited beats IEC Electronics Corp on 9 of the 11 factors compared between the two stocks.

IEC Electronics Corp Company Profile

IEC Electronics Corp. provides electronic manufacturing services (EMS) to a range of technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with an array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. It offers its customers a range of manufacturing services, combined with scientific technical support to ensure their products perform for the critical applications they are intended for. Its products are distributed to and through original equipment manufacturers (OEMs). Its capabilities include design and test development, analysis and testing laboratory, custom functional test design and component risk mitigation.

Alpha and Omega Semiconductor Limited Company Profile

Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.

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