Head-To-Head Review: CUI Global (NASDAQ:CUI) & II-VI (IIVI)

CUI Global (NASDAQ: CUI) and II-VI (NASDAQ:IIVI) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CUI Global and II-VI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CUI Global 0 0 3 0 3.00
II-VI 0 1 4 0 2.80

CUI Global currently has a consensus price target of $9.00, suggesting a potential upside of 153.52%. II-VI has a consensus price target of $44.70, suggesting a potential upside of 13.74%. Given CUI Global’s stronger consensus rating and higher possible upside, research analysts plainly believe CUI Global is more favorable than II-VI.

Profitability

This table compares CUI Global and II-VI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CUI Global -10.29% -16.61% -9.84%
II-VI 9.80% 12.94% 8.16%

Volatility & Risk

CUI Global has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, II-VI has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Valuation & Earnings

This table compares CUI Global and II-VI’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CUI Global $83.00 million 0.90 -$6.25 million ($0.39) -9.10
II-VI $972.05 million 2.56 $179.18 million $1.48 26.55

II-VI has higher revenue and earnings than CUI Global. CUI Global is trading at a lower price-to-earnings ratio than II-VI, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

55.7% of CUI Global shares are held by institutional investors. Comparatively, 78.3% of II-VI shares are held by institutional investors. 4.7% of CUI Global shares are held by company insiders. Comparatively, 6.8% of II-VI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

II-VI beats CUI Global on 10 of the 13 factors compared between the two stocks.

CUI Global Company Profile

CUI Global, Inc. is a platform company. The Company’s segments include Power and Electromechanical, Energy and Other. The Power and Electromechanical segment includes its subsidiaries, CUI, Inc. (CUI), CUI Japan and CUI-Canada, Inc., which provide electromechanical components, including power supplies, transformers, converters, connectors and industrial controls for original equipment manufacturers (OEMs). Its Power and Electro-Mechanical segment aggregates its product offerings into over two categories: components, including connectors, speakers, buzzers, test and measurement devices, and control solutions, including encoders and sensors, and power solutions. Its Energy segment includes its subsidiaries, Orbital Gas Systems Limited (Orbital) and the Orbital Gas Systems, North America, Inc., which consist of gas related test and measurement systems, including the GasPT, a natural gas inferential metering device. The Other segment includes corporate activity.

II-VI Company Profile

II-VI Incorporated develops and manufactures engineered materials, optoelectronic components and products. The Company has three segments: II-VI Laser Solutions, II-VI Photonics and II-VI Performance Products. The II-VI Laser Solutions segment designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used in carbon dioxide (CO2) lasers, fiber-delivered beam delivery systems and processing tools and direct diode lasers for industrial lasers sold under the II-VI HIGHYAG and II-VI Laser Enterprise brand names. The II-VI Photonics segment manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other consumer and commercial applications. The II-VI Performance Products segment designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications.

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