Financial Analysis: Littelfuse (NASDAQ:LFUS) and Gauzy (NASDAQ:GAUZ)

Gauzy (NASDAQ:GAUZ) and Littelfuse (NASDAQ:LFUS) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

96.1% of Littelfuse shares are held by institutional investors. 1.0% of Littelfuse shares are held by company 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.

Risk & Volatility

Gauzy has a beta of -0.46, indicating that its share price is 146% less volatile than the S&P 500. Comparatively, Littelfuse has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Profitability

This table compares Gauzy and Littelfuse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gauzy	N/A	N/A	N/A
Littelfuse	-0.31%	13.02%	8.32%

Analyst Ratings

This is a summary of recent ratings and price targets for Gauzy and Littelfuse, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gauzy	1	0	0	0	1.00
Littelfuse	0	2	4	0	2.67

Littelfuse has a consensus target price of $465.83, suggesting a potential downside of 0.81%. Given Littelfuse’s stronger consensus rating and higher possible upside, analysts clearly believe Littelfuse is more favorable than Gauzy.

Valuation and Earnings

This table compares Gauzy and Littelfuse”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gauzy	$103.53 million	0.07	-$53.18 million	($2.05)	-0.19
Littelfuse	$2.39 billion	5.00	-$71.70 million	($0.50)	-939.26

Gauzy has higher earnings, but lower revenue than Littelfuse. Littelfuse is trading at a lower price-to-earnings ratio than Gauzy, indicating that it is currently the more affordable of the two stocks.

Summary

Littelfuse beats Gauzy on 11 of the 14 factors compared between the two stocks.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.

About Littelfuse

Littelfuse, Inc. designs, manufactures, and sells electronic components, modules, and subassemblies in the Americas, Asia-Pacific, and Europe. The company operates through Electronic, Transportation, and Industrial segments. The Electronics segment offers fuses and fuse accessories, positive temperature coefficient resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge suppressors, varistors, reed switch based magnetic sensing products, and gas discharge tubes; and discrete transient voltage suppressor (TVS) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field-effect transistors and diodes, and insulated gate bipolar transistors. This segment serves industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers, telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics markets. The Transportation segment provides blade, resettable, and high-current and high-voltage fuses, as well as battery cable protectors; fuses, switches, relays, circuit breakers, and power distribution modules; and sensor products. This segment serves heavy-duty truck, construction, agriculture, material handling, and marine. The Industrial segment offers industrial fuses, protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, arc fault detection devices, and temperature sensors for use in renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining, and factory automation. It sells its products through distributors, direct sales force, and manufacturers' representatives. Littelfuse, Inc. was founded in 1927 and is headquartered in Chicago, Illinois.