Head-To-Head Survey: Broadwind Energy (NASDAQ:BWEN) & Burnham (OTCMKTS:BURCA)

Burnham (OTCMKTS:BURCA) and Broadwind Energy (NASDAQ:BWEN) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings for Burnham and Broadwind Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burnham	0	0	0	0	0.00
Broadwind Energy	0	2	2	0	2.50

Broadwind Energy has a consensus price target of $4.50, indicating a potential upside of 47.54%. Given Broadwind Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Broadwind Energy is more favorable than Burnham.

Valuation & Earnings

This table compares Burnham and Broadwind Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burnham	$270.18 million	0.31	$11.95 million	$3.70	6.69
Broadwind Energy	$143.14 million	0.49	$1.15 million	$0.22	13.86

Burnham has higher revenue and earnings than Broadwind Energy. Burnham is trading at a lower price-to-earnings ratio than Broadwind Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Burnham has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Broadwind Energy has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Profitability

This table compares Burnham and Broadwind Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burnham	6.47%	13.03%	8.07%
Broadwind Energy	3.37%	-2.05%	-0.99%

Insider & Institutional Ownership

1.5% of Burnham shares are held by institutional investors. Comparatively, 33.3% of Broadwind Energy shares are held by institutional investors. 6.4% of Broadwind Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Broadwind Energy beats Burnham on 8 of the 14 factors compared between the two stocks.

About Burnham

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.

About Broadwind Energy

Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.