Benchmark Electronics (NYSE:BHE) and Corning (NYSE:GLW) Head to Head Analysis

Corning (NYSE:GLW) and Benchmark Electronics (NYSE:BHE) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Corning and Benchmark Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corning	0	5	15	1	2.81
Benchmark Electronics	0	2	2	0	2.50

Corning presently has a consensus price target of $172.18, indicating a potential upside of 51.47%. Benchmark Electronics has a consensus price target of $88.50, indicating a potential upside of 41.40%. Given Corning’s stronger consensus rating and higher possible upside, analysts clearly believe Corning is more favorable than Benchmark Electronics.

Dividends

Corning pays an annual dividend of $1.12 per share and has a dividend yield of 1.0%. Benchmark Electronics pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Corning pays out 45.3% of its earnings in the form of a dividend. Benchmark Electronics pays out 43.9% 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. Benchmark Electronics has raised its dividend for 1 consecutive years. Benchmark Electronics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Corning has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Institutional and Insider Ownership

69.8% of Corning shares are owned by institutional investors. Comparatively, 92.3% of Benchmark Electronics shares are owned by institutional investors. 0.3% of Corning shares are owned by insiders. Comparatively, 1.1% of Benchmark Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Corning and Benchmark Electronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corning	$15.63 billion	6.27	$1.60 billion	$2.47	46.02
Benchmark Electronics	$2.66 billion	0.84	$24.85 million	$1.55	40.38

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

Profitability

This table compares Corning and Benchmark Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corning	12.13%	20.83%	8.39%
Benchmark Electronics	1.90%	7.71%	3.94%

Summary

Corning beats Benchmark Electronics on 12 of the 18 factors compared between the two stocks.

About Corning

Corning Incorporated is a materials science and technology company with roots dating to 1851, when it was established as Corning Glass Works. The company develops and manufactures specialty glass, ceramics and optical materials for customers in a range of industries. Its products include optical fiber, cable and connectivity solutions for communications networks; glass substrates used in display technologies; and specialty glass such as Gorilla Glass for consumer electronics. Corning also makes ceramic substrates and filters for emissions-control systems, as well as glassware and other products for life sciences and laboratory use.

About Benchmark Electronics

Benchmark Electronics, Inc. is a provider of engineering, design, and manufacturing services for companies that develop complex products. Its services span product development and prototyping, electronics and precision manufacturing, testing, supply-chain management, and aftermarket support. The company serves customers in industries including aerospace and defense, medical technologies, industrial equipment, semiconductor capital equipment, and advanced computing and communications. Its work covers products ranging from electronic assemblies and precision components to complete systems; these are generally produced for customers rather than sold under Benchmark’s own consumer brand.