Erayak Power Solution Group (NASDAQ:RAYA) versus Kimball Electronics (NASDAQ:KE) Financial Review

Erayak Power Solution Group (NASDAQ:RAYA) and Kimball Electronics (NASDAQ:KE) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Erayak Power Solution Group and Kimball Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Erayak Power Solution Group	1	0	0	0	1.00
Kimball Electronics	0	1	2	1	3.00

Kimball Electronics has a consensus target price of $32.00, indicating a potential upside of 12.04%. Given Kimball Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Kimball Electronics is more favorable than Erayak Power Solution Group.

Profitability

This table compares Erayak Power Solution Group and Kimball Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Erayak Power Solution Group	N/A	N/A	N/A
Kimball Electronics	1.62%	6.28%	3.26%

Risk and Volatility

Erayak Power Solution Group has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Erayak Power Solution Group and Kimball Electronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Erayak Power Solution Group	$30.30 million	0.13	-$1.12 million	N/A	N/A
Kimball Electronics	$1.49 billion	0.47	$16.98 million	$0.95	30.06

Kimball Electronics has higher revenue and earnings than Erayak Power Solution Group.

Insider and Institutional Ownership

0.3% of Erayak Power Solution Group shares are held by institutional investors. Comparatively, 76.0% of Kimball Electronics shares are held by institutional investors. 2.8% of Kimball Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Kimball Electronics beats Erayak Power Solution Group on 13 of the 13 factors compared between the two stocks.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.