Anixter (NYSE: AXE) and Houston Wire & Cable (NASDAQ:HWCC) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Risk & Volatility
Anixter has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500. Comparatively, Houston Wire & Cable has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
This is a breakdown of recent ratings for Anixter and Houston Wire & Cable, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Houston Wire & Cable||0||0||0||0||N/A|
Anixter presently has a consensus target price of $88.00, indicating a potential upside of 42.16%. Given Anixter’s higher possible upside, analysts plainly believe Anixter is more favorable than Houston Wire & Cable.
Institutional and Insider Ownership
90.1% of Anixter shares are held by institutional investors. Comparatively, 64.4% of Houston Wire & Cable shares are held by institutional investors. 13.6% of Anixter shares are held by insiders. Comparatively, 3.9% of Houston Wire & Cable shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Anixter and Houston Wire & Cable’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Houston Wire & Cable||0.67%||5.31%||2.53%|
Valuation and Earnings
This table compares Anixter and Houston Wire & Cable’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Anixter||$7.93 billion||0.26||$109.00 million||$5.16||12.00|
|Houston Wire & Cable||$317.70 million||0.42||-$220,000.00||$0.15||54.00|
Anixter has higher revenue and earnings than Houston Wire & Cable. Anixter is trading at a lower price-to-earnings ratio than Houston Wire & Cable, indicating that it is currently the more affordable of the two stocks.
Anixter beats Houston Wire & Cable on 11 of the 13 factors compared between the two stocks.
Anixter International Inc., through its subsidiary, Anixter Inc., distributes enterprise cabling and security solutions, electrical and electronic wire and cable products, and utility power solutions. Its Network & Security Solutions segment offers copper and fiber optic cable and connectivity, access control, video surveillance, intrusion and fire/life safety, cabinet, power, cable management, wireless, professional audio/video, voice and networking switche, and other ancillary products for technology, finance, telecommunications service provider, transportation, education, government, healthcare, and retail industries. The company's Electrical & Electronic Solutions segment provides electrical and electronic wires and cables, shipboard cables, support and supply products, low-voltage and instrumentation cables, industrial communication and control products, security cables, connectors, industrial Ethernet switches, and voice and data cables to the commercial and industrial, and original equipment manufacturer markets. Its Utility Power Solutions segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products, as well as arranges materials management and procurement outsourcing for the power generation and electricity distribution industries. The company serves contractors, installers, system integrators, value-added resellers, architects, engineers, and wholesale distributors in the manufacturing, resource extraction, Internet service provider, and utility industries, as well as defense customers. It distributes its products primarily in North America, Europe, the Middle East, Africa, the Asia Pacific, and Central and Latin America. The company was formerly known as Itel Corporation. Anixter International Inc. was founded in 1957 and is headquartered in Glenview, Illinois.
About Houston Wire & Cable
Houston Wire & Cable Company, through its subsidiaries, sells electrical and mechanical wire and cable, industrial fasteners, hardware, and related services in the United States. It offers wire and cable products, including continuous and interlocked armor cables; control and power cables; electronic wires and cables; flexible and portable cords; instrumentation and thermocouple cables; lead and high temperature cables; medium voltage cables; and premise and category wires and cables, primary and secondary aluminum distribution cables, and steel wire ropes and wire rope slings, as well as synthetic fiber rope slings, chains, shackles, and other related hardware and corrosion resistant products. The company also provides private branded products comprising its proprietary brand LifeGuard, a low-smoke zero-halogen cable. Its products are used in maintenance, repair, and operations activities, and related projects; larger-scale projects in the utility, industrial, and infrastructure markets; and a range of industrial applications, such as communications, energy, engineering and construction, general manufacturing, marine construction and marine transportation, mining, infrastructure, oilfield services, petrochemical, transportation, utility, wastewater treatment, and food and beverage. Houston Wire & Cable Company was founded in 1975 and is based in Houston, Texas.
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