Head to Head Review: Bel Fuse (NASDAQ:BELFB) & SiTime (NASDAQ:SITM)

Bel Fuse (NASDAQ:BELFB) and SiTime (NASDAQ:SITM) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

58.4% of Bel Fuse shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 5.4% of Bel Fuse shares are owned by insiders. Comparatively, 2.1% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Bel Fuse and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	8.59%	14.12%	6.22%
SiTime	-32.15%	-7.54%	-6.16%

Earnings and Valuation

This table compares Bel Fuse and SiTime”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$534.79 million	3.27	$40.96 million	$4.08	33.84
SiTime	$255.62 million	22.84	-$93.60 million	($3.48)	-64.51

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

Volatility & Risk

Bel Fuse has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Bel Fuse and SiTime, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	0	5	2	3.29
SiTime	1	0	5	0	2.67

Bel Fuse currently has a consensus target price of $126.80, suggesting a potential downside of 8.16%. SiTime has a consensus target price of $243.33, suggesting a potential upside of 8.39%. Given SiTime’s higher possible upside, analysts clearly believe SiTime is more favorable than Bel Fuse.

Summary

Bel Fuse beats SiTime on 10 of the 14 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.