Critical Analysis: Benchmark Electronics (BHE) vs. Its Competitors

Benchmark Electronics (NYSE: BHE) is one of 103 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its competitors? We will compare Benchmark Electronics to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Valuation & Earnings

This table compares Benchmark Electronics and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Benchmark Electronics $2.31 billion $64.04 million 24.72
Benchmark Electronics Competitors $4.28 billion $522.04 million 45.23

Benchmark Electronics’ competitors have higher revenue and earnings than Benchmark Electronics. Benchmark Electronics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Benchmark Electronics has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Benchmark Electronics’ competitors have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Benchmark Electronics and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Benchmark Electronics 0 3 0 0 2.00
Benchmark Electronics Competitors 928 4770 8732 362 2.58

Benchmark Electronics presently has a consensus price target of $36.67, suggesting a potential upside of 17.71%. As a group, “Semiconductors” companies have a potential upside of 4.70%. Given Benchmark Electronics’ higher possible upside, research analysts clearly believe Benchmark Electronics is more favorable than its competitors.

Insider & Institutional Ownership

94.7% of Benchmark Electronics shares are held by institutional investors. Comparatively, 65.3% of shares of all “Semiconductors” companies are held by institutional investors. 0.9% of Benchmark Electronics shares are held by insiders. Comparatively, 6.3% of shares of all “Semiconductors” companies are held by 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 Benchmark Electronics and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Benchmark Electronics 2.63% 5.62% 3.83%
Benchmark Electronics Competitors -44.46% 1.44% 1.38%

Summary

Benchmark Electronics competitors beat Benchmark Electronics on 8 of the 13 factors compared.

Benchmark Electronics Company Profile

Benchmark Electronics, Inc. is a provider of electronic manufacturing services. The Company operates through three segments: the Americas, Asia and Europe. It provides services to original equipment manufacturers of industrial control equipment, including equipment for the aerospace and defense industry; telecommunication equipment; computers and related products for business enterprises; medical devices, and testing and instrumentation products. It offers integrated design and manufacturing services. Its operations consist of over three principal areas: manufacturing and assembly operations, including printed circuit boards assemblies and subsystem assembly, box build and systems integration; precision technology manufacturing, which include precision machining, metal joining, assembly and functional testing, and specialized engineering services, and specialized engineering services, such as product design, printed circuit board layout, prototyping, automation and test development.

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