Belden (NYSE:BDC) and Optical Cable (NASDAQ:OCC) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Risk and Volatility
Belden has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Optical Cable has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Belden and Optical Cable, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Belden currently has a consensus price target of $72.00, suggesting a potential upside of 35.11%. Given Belden’s higher possible upside, research analysts plainly believe Belden is more favorable than Optical Cable.
Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Optical Cable does not pay a dividend. Belden pays out 3.7% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Belden and Optical Cable’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Belden||$2.39 billion||0.90||$93.21 million||$5.35||9.96|
|Optical Cable||$64.09 million||0.56||-$1.73 million||N/A||N/A|
Belden has higher revenue and earnings than Optical Cable.
Insider and Institutional Ownership
11.8% of Optical Cable shares are owned by institutional investors. 1.3% of Belden shares are owned by company insiders. Comparatively, 24.3% of Optical Cable shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Belden and Optical Cable’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Belden beats Optical Cable on 10 of the 14 factors compared between the two stocks.
Belden Company Profile
Belden Inc. designs, manufactures, and markets signal transmission solutions worldwide. It operates through Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions segments. The Broadcast Solutions segment offers camera solutions, production switchers, server and storage systems for instant replay applications, interfaces and routers, monitoring systems, in-home network systems, playout systems, outside plant connectivity products, and other cable, and connectivity products. The Enterprise Solutions segment provides copper cable and connectivity solutions, fiber cable and connectivity solutions, and racks and enclosures; and power, cooling, and airflow management products for mission-critical data center operations. The Industrial Solutions segment offers infrastructure components and on-machine connectivity systems, including industrial and input/output (I/O) connectors, industrial cables, IP and networking cables, I/O modules, distribution boxes, ruggedized controls and sensors, customer specific wiring solutions, and controllers and sensors for use in industrial automation applications. The Network Solutions provides foundational controls for protecting enterprises against cyberattacks, automating IT regulatory compliance and improving operational efficiency; and software and services that protect against cyberattacks and data breaches with integrated security controls that discover assets, harden configurations, identify vulnerabilities and detect threats. It sells its products to distributors, end-users, installers, and original equipment manufacturers. The company was formerly known as Belden CDT Inc. and changed its name to Belden Inc. in May 2007. Belden Inc. was founded in 1902 and is based in St. Louis, Missouri.
Optical Cable Company Profile
Optical Cable Corporation, together with its subsidiaries, manufactures and sells fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair. It also offers fiber optic connectivity products, including fiber optic wall mounts, cabinet mount and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories. In addition, the company provides copper connectivity products comprising category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for datacenter, telecommunications closet, equipment room, and workstation applications. Further, it offers network, data storage, and telecommunications management systems, such as data cabinets, wall-mount enclosures, cable management systems, and open frame relay racks for enterprise and residential use; and datacom wiring products, such as various enclosures, modules, and modular outlets for single dwelling and multiple dwelling residential uses. Additionally, the company provides specialty fiber optic connectors and connectivity components, ruggedized copper datacom connectors, and related systems and solutions for military and harsh environment applications. It sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was founded in 1983 and is headquartered in Roanoke, Virginia.
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