Financial Analysis: nVent Electric (NYSE:NVT) versus ICZOOM Group (NASDAQ:IZM)

ICZOOM Group (NASDAQ:IZM) and nVent Electric (NYSE:NVT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Volatility and Risk

ICZOOM Group has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares ICZOOM Group and nVent Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICZOOM Group	N/A	N/A	N/A
nVent Electric	16.83%	14.29%	7.42%

Analyst Ratings

This is a summary of recent recommendations for ICZOOM Group and nVent Electric, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICZOOM Group	1	0	0	0	1.00
nVent Electric	0	0	9	1	3.10

nVent Electric has a consensus price target of $123.25, indicating a potential upside of 19.47%. Given nVent Electric’s stronger consensus rating and higher possible upside, analysts plainly believe nVent Electric is more favorable than ICZOOM Group.

Valuation & Earnings

This table compares ICZOOM Group and nVent Electric”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICZOOM Group	$187.05 million	0.10	$1.19 million	N/A	N/A
nVent Electric	$3.01 billion	5.54	$331.80 million	$3.63	28.42

nVent Electric has higher revenue and earnings than ICZOOM Group.

Institutional & Insider Ownership

34.3% of ICZOOM Group shares are owned by institutional investors. Comparatively, 90.1% of nVent Electric shares are owned by institutional investors. 2.5% of nVent Electric shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

nVent Electric beats ICZOOM Group on 12 of the 13 factors compared between the two stocks.

About ICZOOM Group

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in Hong Kong and the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers customs clearance, temporary warehousing, logistic, and shipping services. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. ICZOOM Group Inc. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.