Reviewing Belden (BDC) and Corning (GLW)
Corning (NYSE: GLW) and Belden (NYSE:BDC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares Corning and Belden’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Corning||$10.12 billion||2.33||-$497.00 million||$1.72||15.99|
|Belden||$2.39 billion||1.17||$93.21 million||$5.35||12.50|
This table compares Corning and Belden’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Corning has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Belden has a beta of 2.34, suggesting that its stock price is 134% more volatile than the S&P 500.
Corning pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Corning pays out 41.9% of its earnings in the form of a dividend. Belden pays out 3.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Corning has increased its dividend for 7 consecutive years. Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and price targets for Corning and Belden, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Corning currently has a consensus price target of $30.50, suggesting a potential upside of 10.91%. Belden has a consensus price target of $91.80, suggesting a potential upside of 37.28%. Given Belden’s stronger consensus rating and higher possible upside, analysts plainly believe Belden is more favorable than Corning.
Insider & Institutional Ownership
72.9% of Corning shares are owned by institutional investors. 0.5% of Corning shares are owned by insiders. Comparatively, 1.3% of Belden shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Belden beats Corning on 11 of the 17 factors compared between the two stocks.
Corning Incorporated manufactures and sells specialty glasses, ceramics, and related materials in North America, the Asia Pacific, Europe, and internationally. The company operates through five segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. The Display Technologies segment manufactures glass substrates for liquid crystal displays (LCDs) used in LCD televisions, notebook computers, and flat panel desktop monitors. The Optical Communications segment manufactures optical fiber and cable; and hardware and equipment products comprising cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for various carrier network applications. This segment also offers subscriber demarcation, connection and protection devices, various digital subscriber line passive solutions, and outside plant enclosures; and coaxial RF interconnects for the cable television industry and microwave applications. The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, and fluoride crystals. The Life Sciences segment manufactures and supplies scientific laboratory products consisting of consumables, such as plastic vessels, specialty surfaces, and media and serum, as well as general labware and equipment for cell culture research, bioprocessing, genomics, drug discovery, microbiology, and chemistry. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.
Belden Inc. designs, manufactures, and markets signal transmission solutions worldwide. It operates through Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions segments. The Broadcast Solutions segment offers camera solutions, production switchers, server and storage systems for instant replay applications, interfaces and routers, monitoring systems, in-home network systems, playout systems, outside plant connectivity products, and other cable, and connectivity products. The Enterprise Solutions segment provides copper cable and connectivity solutions, fiber cable and connectivity solutions, and racks and enclosures; and power, cooling, and airflow management products for mission-critical data center operations. The Industrial Solutions segment offers infrastructure components and on-machine connectivity systems, including industrial and input/output (I/O) connectors, industrial cables, IP and networking cables, I/O modules, distribution boxes, ruggedized controls and sensors, customer specific wiring solutions, and controllers and sensors for use in industrial automation applications. The Network Solutions provides foundational controls for protecting enterprises against cyberattacks, automating IT regulatory compliance and improving operational efficiency; and software and services that protect against cyberattacks and data breaches with integrated security controls that discover assets, harden configurations, identify vulnerabilities and detect threats. It sells its products to distributors, end-users, installers, and original equipment manufacturers. The company was formerly known as Belden CDT Inc. and changed its name to Belden Inc. in May 2007. Belden Inc. was founded in 1902 and is based in St. Louis, Missouri.
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