Provision (OTCMKTS:PVHO) and Knowles (NYSE:KN) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Provision and Knowles’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provision $1.70 million 0.58 -$7.32 million N/A N/A
Knowles $744.20 million 1.73 $68.30 million $0.70 20.34

Knowles has higher revenue and earnings than Provision.

Volatility and Risk

Provision has a beta of -2.74, indicating that its stock price is 374% less volatile than the S&P 500. Comparatively, Knowles has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Provision and Knowles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provision N/A N/A -89.48%
Knowles 8.99% 6.40% 4.68%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Provision and Knowles, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provision 0 0 0 0 N/A
Knowles 1 2 4 0 2.43

Knowles has a consensus target price of $17.17, suggesting a potential upside of 20.55%. Given Knowles’ higher possible upside, analysts plainly believe Knowles is more favorable than Provision.

Summary

Knowles beats Provision on 9 of the 9 factors compared between the two stocks.

Provision Company Profile

Provision Holding, Inc. focuses on the development and distribution of three-dimensional (3D) holographic interactive video displays primarily for advertising and product merchandising markets. The company's products include HoloVision displays and 3D Savings Center kiosks that offer advertisers and customers to reach captive audience in grocery stores, malls, convenience stores, gas stations, banks, and other retail locations. Its HoloVision displays are also used in education, medical, entertainment, and consumer applications. Provision Holding, Inc. has a strategic alliance agreement with Coinstar, LLC to develop and integrate HoloVision display systems into Coinstar's kiosks. The company is headquartered in Chatsworth, California.

Knowles Company Profile

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions to the mobile consumer electronics, industrial, defense, aerospace medical, and telecommunications markets worldwide. The company operates in two segments, Audio and Precision Devices. The Audio segment designs and manufactures audio products, including microphones and balanced armature speakers, signal processing technologies, and software and algorithms used in applications that serve the mobile, ear, and Internet of Things markets. This segment also offers analog and digital micro-electro-mechanical systems, and electret condenser and smart microphones; and ultrasonic sensors and acoustic processors, as well as transducer products used primarily in hearing health and headset applications. The Precision Devices segment designs and delivers engineered capacitors and radio frequency devices for technically demanding applications, such as power supplies, radar, medical implants, and satellites for the industrial, defense, aerospace, medical, and telecommunications markets. The company also provides single layer electronic components to the radio frequency device, microwave, telecommunication, fiber optics, defense, and aerospace markets. It sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.

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