Hubbell (HUBB) versus Electronic Systems Technology (ELST) Financial Analysis

Hubbell (NYSE:HUBB) and Electronic Systems Technology (OTCMKTS:ELST) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

Hubbell pays an annual dividend of $3.36 per share and has a dividend yield of 3.2%. Electronic Systems Technology does not pay a dividend. Hubbell pays out 56.7% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Hubbell and Electronic Systems Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hubbell $3.67 billion 1.58 $243.10 million $5.93 17.92
Electronic Systems Technology $1.42 million 1.41 -$440,000.00 N/A N/A

Hubbell has higher revenue and earnings than Electronic Systems Technology.

Profitability

This table compares Hubbell and Electronic Systems Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hubbell 6.88% 23.08% 8.41%
Electronic Systems Technology -26.21% -18.83% -18.29%

Risk & Volatility

Hubbell has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Electronic Systems Technology has a beta of -0.5, indicating that its stock price is 150% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Hubbell and Electronic Systems Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hubbell 0 0 6 0 3.00
Electronic Systems Technology 0 0 0 0 N/A

Hubbell presently has a consensus price target of $136.00, indicating a potential upside of 27.98%. Given Hubbell’s higher probable upside, research analysts clearly believe Hubbell is more favorable than Electronic Systems Technology.

Insider & Institutional Ownership

86.4% of Hubbell shares are held by institutional investors. 0.7% of Hubbell shares are held by company insiders. Comparatively, 45.7% of Electronic Systems Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Hubbell beats Electronic Systems Technology on 11 of the 13 factors compared between the two stocks.

Hubbell Company Profile

Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical and Power. The Electrical segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various high voltage test and measurement equipment, industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product oriented Internet sites; special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers; and high voltage products directly to its customers through sales engineers. The Power segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms, and civil construction and transportation industries. Hubbell Incorporated was founded in 1888 and is headquartered in Shelton, Connecticut.

Electronic Systems Technology Company Profile

Electronic Systems Technology, Inc., doing business as ESTeem Wireless Modems, designs, develops, manufactures and markets industrial wireless products and accessories in the United States and internationally. Its ESTeem industrial wireless products provide communication links between computers networks, network enabled devices, and mobile devices without cables. The company also offers data radio products for process automation in commercial, industrial, and government arenas, as well as various accessories to support the ESTeem products, such as antennas, power supplies, and cable assemblies. In addition, it offers repair and upgrade services; and professional, site survey testing, system start-up, and custom engineering services. The company's products are used in various applications, including water/wastewater, oil/gas, mining, and industrial automation. It markets its products through direct sales, sales representatives, and resellers. Electronic Systems Technology, Inc. was founded in 1982 and is based in Kennewick, Washington.

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