Garmin (NYSE:GRMN) and Hon Hai Precision Industry Co., Ltd. Sponsored GDR (OTCMKTS:HNHPF) Financial Analysis

Garmin (NYSE:GRMN) and Hon Hai Precision Industry Co., Ltd. Sponsored GDR (OTCMKTS:HNHPF) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Dividends

Garmin pays an annual dividend of $3.60 per share and has a dividend yield of 1.5%. Hon Hai Precision Industry Co., Ltd. Sponsored GDR pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Garmin pays out 40.1% of its earnings in the form of a dividend. Garmin has raised its dividend for 8 consecutive years.

Volatility and Risk

Garmin has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Hon Hai Precision Industry Co., Ltd. Sponsored GDR has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

81.6% of Garmin shares are held by institutional investors. 15.4% of Garmin 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Garmin and Hon Hai Precision Industry Co., Ltd. Sponsored GDR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	0	4	2	1	2.57
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	0	0	1	0	3.00

Garmin currently has a consensus price target of $268.40, indicating a potential upside of 11.78%. Given Garmin’s higher possible upside, equities analysts clearly believe Garmin is more favorable than Hon Hai Precision Industry Co., Ltd. Sponsored GDR.

Earnings and Valuation

This table compares Garmin and Hon Hai Precision Industry Co., Ltd. Sponsored GDR”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$7.25 billion	6.39	$1.66 billion	$8.97	26.77
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	$213.33 billion	0.53	$4.75 billion	N/A	N/A

Hon Hai Precision Industry Co., Ltd. Sponsored GDR has higher revenue and earnings than Garmin.

Profitability

This table compares Garmin and Hon Hai Precision Industry Co., Ltd. Sponsored GDR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garmin	23.26%	20.07%	16.34%
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	N/A	N/A	N/A

Summary

Garmin beats Hon Hai Precision Industry Co., Ltd. Sponsored GDR on 10 of the 16 factors compared between the two stocks.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

About Hon Hai Precision Industry Co., Ltd. Sponsored GDR

Hon Hai Precision Industry Co., Ltd. provides electronic OEM services. The company offers consumer electronics comprising of television sets, game consoles, set-top boxes, and speakers. It also provides cloud networking products consisting of routers, servers, edge computing, data centers, and satellite communications and other related equipment. In addition, the company offers desktop computers, notebook computers, tablets, business machines, printers, etc. Further, it provides connectors, precision optical components, lenses, electronic components, semiconductor products, automotive electronic parts, cutting tools/mold fixtures, and mechanical equipment. The company operates in Taiwan, Mainland China, India, Japan, Vietnam, Malaysia, Singapore, the Czech Republic, Hungary, Slovakia, the United States, Brazil, and Mexico. Hon Hai Precision Industry Co., Ltd. was founded in 1974 and is headquartered in New Taipei City, Taiwan.