Littelfuse (NASDAQ: LFUS) and ABB Group (NYSE:ABB) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
This is a summary of current ratings and price targets for Littelfuse and ABB Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Littelfuse pays an annual dividend of $1.48 per share and has a dividend yield of 0.7%. ABB Group pays an annual dividend of $0.73 per share and has a dividend yield of 3.1%. Littelfuse pays out 19.1% of its earnings in the form of a dividend. ABB Group pays out 58.4% 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. ABB Group has increased its dividend for 6 consecutive years. ABB Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
94.3% of Littelfuse shares are held by institutional investors. Comparatively, 5.5% of ABB Group shares are held by institutional investors. 3.8% of Littelfuse 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 Littelfuse and ABB Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Littelfuse||$1.22 billion||4.24||$119.51 million||$7.74||26.90|
|ABB Group||$34.31 billion||1.48||$2.21 billion||$1.25||18.99|
ABB Group has higher revenue and earnings than Littelfuse. ABB Group is trading at a lower price-to-earnings ratio than Littelfuse, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Littelfuse has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, ABB Group has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
This table compares Littelfuse and ABB Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Littelfuse beats ABB Group on 10 of the 17 factors compared between the two stocks.
Littelfuse Company Profile
Littelfuse, Inc. is a supplier of circuit protection products for the electronics, automotive and industrial markets. The Company operates through three segments. The Electronics segment provides circuit protection components for overcurrent and overvoltage protection, as well as sensor components and modules to manufacturers of a range of electronic products. The Automotive segment provides circuit protection and sensor products to the worldwide automotive original equipment manufacturers (OEM) and parts distributors of passenger automobiles, trucks, buses, and off-road equipment. The Industrial Segment provides circuit protection products for industrial and commercial customers. The Company also offers electronic reed switches and sensors, automotive sensors for comfort and safety systems and a range of electromechanical and electronic switch and control devices for commercial and specialty vehicles.
ABB Group Company Profile
ABB Ltd manufactures and sells electrification, robotics and motion, industrial automation, and power grid products worldwide. Its Electrification Products segment provides modular substation packages, distribution automation products, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. This segment serves building, data center, rail, wind and solar, food and beverage, marine, and oil and gas industries. The company's Robotics and Motion segment offers robotics, motors, generators, drives, wind converters, components and systems for railways and related services, and digital services for applications in industries, transportation and infrastructure, and utilities. This segment serves machinery manufacturers, process industries, hybrid and batch manufacturers, transportation equipment manufacturers, discrete manufacturing companies, utilities, and customers in the automotive industry. Its Industrial Automation segment provides process and discrete control solutions, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation and solutions, electric ship propulsion systems, machine and factory automation solutions, and turbochargers, as well as remote monitoring, preventive maintenance, and cybersecurity services. This segment serves companies in the oil and gas, minerals and mining, metals, pulp and paper, chemicals and pharmaceuticals, food and beverage, power generation, and marine industries. The company's Power Grids segment offers turnkey grid integration, transmission systems, and substation solutions; transformers; and circuit breakers, switchgear, and capacitors. This segment serves transmission and distribution operators and owners, as well as utilities and industrial, transportation, and infrastructure customers. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.
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