Critical Analysis: SiTime (NASDAQ:SITM) & Kimball Electronics (NASDAQ:KE)

SiTime (NASDAQ:SITM) and Kimball Electronics (NASDAQ:KE) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Valuation & Earnings

This table compares SiTime and Kimball Electronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$281.49 million	34.44	-$93.60 million	($2.96)	-125.49
Kimball Electronics	$1.49 billion	0.50	$16.98 million	$0.95	32.45

Kimball Electronics has higher revenue and earnings than SiTime. SiTime is trading at a lower price-to-earnings ratio than Kimball Electronics, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

SiTime has a beta of 2.49, indicating that its share price is 149% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for SiTime and Kimball Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1	1	7	0	2.67
Kimball Electronics	0	2	2	0	2.50

SiTime presently has a consensus target price of $360.63, suggesting a potential downside of 2.91%. Kimball Electronics has a consensus target price of $32.00, suggesting a potential upside of 3.80%. Given Kimball Electronics’ higher possible upside, analysts clearly believe Kimball Electronics is more favorable than SiTime.

Profitability

This table compares SiTime and Kimball Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiTime	-25.18%	-5.69%	-4.76%
Kimball Electronics	1.62%	6.28%	3.26%

Insider & Institutional Ownership

84.3% of SiTime shares are held by institutional investors. Comparatively, 76.0% of Kimball Electronics shares are held by institutional investors. 2.1% of SiTime shares are held by insiders. Comparatively, 2.8% of Kimball Electronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Kimball Electronics beats SiTime on 9 of the 14 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.