Financial Analysis: IEH (IEHC) & Amphenol (APH)

IEH (OTCMKTS:IEHC) and Amphenol (NYSE:APH) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares IEH and Amphenol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IEH 17.38% 26.91% 23.12%
Amphenol 9.64% 28.57% 11.73%

Earnings and Valuation

This table compares IEH and Amphenol’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IEH $23.47 million 1.15 $2.56 million N/A N/A
Amphenol $7.01 billion 3.65 $650.50 million $3.12 27.20

Amphenol has higher revenue and earnings than IEH.

Dividends

Amphenol pays an annual dividend of $0.92 per share and has a dividend yield of 1.1%. IEH does not pay a dividend. Amphenol pays out 29.5% of its earnings in the form of a dividend. Amphenol has increased its dividend for 6 consecutive years.

Insider & Institutional Ownership

4.1% of IEH shares are owned by institutional investors. Comparatively, 94.3% of Amphenol shares are owned by institutional investors. 48.0% of IEH shares are owned by insiders. Comparatively, 2.5% of Amphenol shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for IEH and Amphenol, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IEH 0 0 0 0 N/A
Amphenol 0 3 2 0 2.40

Amphenol has a consensus target price of $98.80, indicating a potential upside of 16.41%. Given Amphenol’s higher possible upside, analysts clearly believe Amphenol is more favorable than IEH.

Volatility and Risk

IEH has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Amphenol has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Summary

Amphenol beats IEH on 11 of the 15 factors compared between the two stocks.

IEH Company Profile

IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications. Its products include are used as basic components of larger assemblies of finished goods. The company markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to government, military, aerospace, medical, automotive, industrial, test equipment, and commercial electronic markets. It markets its products in the United States, Canada, Israel, India, various Pacific Rim countries, South Korea, and the European Union. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1937 and is based in Brooklyn, New York.

Amphenol Company Profile

Amphenol Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors worldwide. It operates through two segments, Interconnect Products and Assemblies, and Cable Products and Solutions. The Interconnect Products and Assemblies segment offers connector and connector systems, including fiber optic, harsh environment, high-speed, and radio frequency interconnect products, as well as antennas; power interconnect products, bus bars, and distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; and other products comprising antennas, flexible and rigid printed circuit boards, hinges, molded parts, production-related products, sensors and sensor-based products, and switches. The Cable Products and Solutions segment offers coaxial, power, and specialty cables; cable assemblies; and components comprising combiner/splitter products, connector and connector systems, and fiber optic components. The company sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and communication network operators in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.

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