Erayak Power Solution Group (NASDAQ:RAYA) & Kimball Electronics (NASDAQ:KE) Critical Analysis

Kimball Electronics (NASDAQ:KE) and Erayak Power Solution Group (NASDAQ:RAYA) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

76.0% of Kimball Electronics shares are held by institutional investors. Comparatively, 0.3% of Erayak Power Solution Group shares are held by institutional investors. 2.8% of Kimball Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Kimball Electronics has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Erayak Power Solution Group has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kimball Electronics and Erayak Power Solution Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimball Electronics	0	1	2	1	3.00
Erayak Power Solution Group	1	0	0	0	1.00

Kimball Electronics currently has a consensus price target of $32.00, indicating a potential upside of 9.55%. Given Kimball Electronics’ stronger consensus rating and higher probable upside, research analysts clearly believe Kimball Electronics is more favorable than Erayak Power Solution Group.

Profitability

This table compares Kimball Electronics and Erayak Power Solution Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimball Electronics	1.62%	6.28%	3.26%
Erayak Power Solution Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Kimball Electronics and Erayak Power Solution Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimball Electronics	$1.48 billion	0.48	$16.98 million	$0.95	30.75
Erayak Power Solution Group	$30.30 million	0.12	-$1.12 million	N/A	N/A

Kimball Electronics has higher revenue and earnings than Erayak Power Solution Group.

Summary

Kimball Electronics beats Erayak Power Solution Group on 13 of the 13 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.