Critical Comparison: Ralliant (NYSE:RAL) & Bel Fuse (NASDAQ:BELFB)

Bel Fuse (NASDAQ:BELFB) and Ralliant (NYSE:RAL) are both mid-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Profitability

This table compares Bel Fuse and Ralliant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.21%	9.75%	5.23%
Ralliant	-56.38%	14.97%	6.99%

Institutional & Insider Ownership

58.4% of Bel Fuse shares are held by institutional investors. 5.4% of Bel Fuse shares are held by insiders. Comparatively, 0.4% of Ralliant shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Bel Fuse and Ralliant”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$675.46 million	5.51	$61.54 million	$4.14	62.30
Ralliant	$2.07 billion	3.92	-$1.22 billion	($10.85)	-6.76

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bel Fuse and Ralliant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	1	1	7	0	2.67
Ralliant	1	4	7	0	2.50

Bel Fuse currently has a consensus price target of $324.00, indicating a potential upside of 25.61%. Ralliant has a consensus price target of $77.20, indicating a potential upside of 5.25%. Given Bel Fuse’s stronger consensus rating and higher possible upside, analysts plainly believe Bel Fuse is more favorable than Ralliant.

Dividends

Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 0.1%. Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Bel Fuse pays out 6.8% of its earnings in the form of a dividend. Ralliant pays out -1.8% 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. Ralliant is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Bel Fuse has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Ralliant has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Summary

Bel Fuse beats Ralliant on 10 of the 15 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About Ralliant

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.