Contrasting Standex International (NYSE:SXI) and Alps Electric (OTCMKTS:APELY)

Alps Electric (OTCMKTS:APELY) and Standex International (NYSE:SXI) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

0.1% of Alps Electric shares are owned by institutional investors. Comparatively, 90.3% of Standex International shares are owned by institutional investors. 10.4% of Alps Electric shares are owned by company insiders. Comparatively, 2.0% of Standex International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Alps Electric and Standex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	2.64%	7.24%	4.09%
Standex International	11.73%	14.47%	6.78%

Dividends

Alps Electric pays an annual dividend of $0.47 per share and has a dividend yield of 1.6%. Standex International pays an annual dividend of $1.36 per share and has a dividend yield of 0.5%. Alps Electric pays out 27.0% of its earnings in the form of a dividend. Standex International pays out 15.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Standex International has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for Alps Electric and Standex International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	0	1	0	0	2.00
Standex International	0	2	3	0	2.60

Standex International has a consensus price target of $298.67, suggesting a potential upside of 5.98%. Given Standex International’s stronger consensus rating and higher possible upside, analysts clearly believe Standex International is more favorable than Alps Electric.

Risk and Volatility

Alps Electric has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Standex International has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Alps Electric and Standex International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.77 billion	0.45	$177.41 million	$1.74	17.00
Standex International	$891.60 million	3.88	$104.63 million	$8.67	32.50

Alps Electric has higher revenue and earnings than Standex International. Alps Electric is trading at a lower price-to-earnings ratio than Standex International, indicating that it is currently the more affordable of the two stocks.

Summary

Standex International beats Alps Electric on 13 of the 17 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

About Standex International

Standex International Corporation, together with subsidiaries, engages in the manufacture and sale of various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and custom wound transformers and inductors for low and high frequency, current sense technology, advanced planar transformer technology, value added assembly, and mechanical packaging applications under the Standex Electronics, Renco, and Agile Magnetics. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries under the Piazza Rosa, World Client Services, Tenibac-Graphion, GS Engineering, and Innovent brand names. The Scientific segment offers temperature-controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets under the American BioTech Supply, Lab Research Products, Corepoint, Cryosafe, CryoGuard, and Scientific brands. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets under the Spincraft brand. The Specialty Solutions segment manufactures and sells refrigerated, heated, and dry merchandizing display cases; and single and double acting telescopic, and piston rod hydraulic cylinders under the Federal and Custom Hoist brands. The company was founded in 1955 and is headquartered in Salem, New Hampshire.