Mellanox Technologies (MLNX) and Benchmark Electronics (BHE) Head to Head Review
Mellanox Technologies (NASDAQ: MLNX) and Benchmark Electronics (NYSE:BHE) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
This is a breakdown of current ratings and target prices for Mellanox Technologies and Benchmark Electronics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mellanox Technologies presently has a consensus target price of $51.00, indicating a potential upside of 4.51%. Benchmark Electronics has a consensus target price of $36.67, indicating a potential upside of 22.43%. Given Benchmark Electronics’ higher possible upside, analysts plainly believe Benchmark Electronics is more favorable than Mellanox Technologies.
Risk and Volatility
Mellanox Technologies has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.
Institutional and Insider Ownership
59.4% of Mellanox Technologies shares are held by institutional investors. Comparatively, 95.3% of Benchmark Electronics shares are held by institutional investors. 6.1% of Mellanox Technologies shares are held by insiders. Comparatively, 0.9% of Benchmark Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Mellanox Technologies and Benchmark Electronics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Mellanox Technologies||$857.50 million||2.90||$18.51 million||($0.16)||-305.00|
|Benchmark Electronics||$2.31 billion||0.64||$64.04 million||$1.25||23.96|
Benchmark Electronics has higher revenue and earnings than Mellanox Technologies. Mellanox Technologies is trading at a lower price-to-earnings ratio than Benchmark Electronics, indicating that it is currently the more affordable of the two stocks.
This table compares Mellanox Technologies and Benchmark Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Benchmark Electronics beats Mellanox Technologies on 8 of the 14 factors compared between the two stocks.
Mellanox Technologies Company Profile
Mellanox Technologies, Ltd. is a fabless semiconductor company. The Company is an integrated supplier of interconnect products and solutions based on the InfiniBand and Ethernet standards. The Company operates in the development, manufacturing, marketing and sales of interconnect products segment. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration. The products it offers include integrated circuits (ICs), adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories. Together these products form a networking solution, focused on computing, storage and communication applications used in multiple markets, including high-performance computing (HPC), cloud, Web 2.0, storage, financial services, and enterprise data center (EDC).
Benchmark Electronics Company Profile
Benchmark Electronics, Inc. is a provider of electronic manufacturing services. The Company operates through three segments: the Americas, Asia and Europe. It provides services to original equipment manufacturers of industrial control equipment, including equipment for the aerospace and defense industry; telecommunication equipment; computers and related products for business enterprises; medical devices, and testing and instrumentation products. It offers integrated design and manufacturing services. Its operations consist of over three principal areas: manufacturing and assembly operations, including printed circuit boards assemblies and subsystem assembly, box build and systems integration; precision technology manufacturing, which include precision machining, metal joining, assembly and functional testing, and specialized engineering services, and specialized engineering services, such as product design, printed circuit board layout, prototyping, automation and test development.
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