Financial Survey: American Superconductor (NASDAQ:AMSC) versus Cemtrex (NASDAQ:CETX)

Cemtrex (NASDAQ:CETX) and American Superconductor (NASDAQ:AMSC) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Cemtrex has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, American Superconductor has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500.

Profitability

This table compares Cemtrex and American Superconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemtrex	-26.92%	-458.07%	-34.06%
American Superconductor	6.00%	9.35%	6.20%

Institutional and Insider Ownership

2.0% of Cemtrex shares are owned by institutional investors. Comparatively, 52.3% of American Superconductor shares are owned by institutional investors. 4.8% of American Superconductor shares are owned 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.

Valuation and Earnings

This table compares Cemtrex and American Superconductor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cemtrex	$66.86 million	0.03	-$7.23 million	$4,095.00	0.00
American Superconductor	$222.82 million	10.75	$6.03 million	$0.39	136.05

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cemtrex and American Superconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemtrex	0	0	0	0	0.00
American Superconductor	0	0	3	0	3.00

American Superconductor has a consensus price target of $33.6667, suggesting a potential downside of 36.55%. Given American Superconductor’s stronger consensus rating and higher probable upside, analysts clearly believe American Superconductor is more favorable than Cemtrex.

Summary

American Superconductor beats Cemtrex on 13 of the 14 factors compared between the two stocks.

About Cemtrex

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.

About American Superconductor

American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship’s magnetic signature; and ON board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment’s design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.