Bel Fuse (NASDAQ:BELFA – Get Free Report) and Brother Industries (OTCMKTS:BRTHY – Get Free Report) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Dividends
Bel Fuse pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. Brother Industries pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Bel Fuse pays out 4.9% of its earnings in the form of a dividend. Brother Industries pays out 30.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bel Fuse has raised its dividend for 1 consecutive years.
Insider and Institutional Ownership
6.0% of Bel Fuse shares are held by institutional investors. 5.5% of Bel Fuse shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Bel Fuse | 10.04% | 21.18% | 8.77% |
| Brother Industries | 6.19% | 7.84% | 5.88% |
Earnings and Valuation
This table compares Bel Fuse and Brother Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bel Fuse | $534.79 million | 3.77 | $40.96 million | $4.93 | 32.34 |
| Brother Industries | $5.76 billion | 0.94 | $361.54 million | $2.88 | 14.62 |
Brother Industries has higher revenue and earnings than Bel Fuse. Brother Industries is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Bel Fuse and Brother Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bel Fuse | 0 | 1 | 1 | 1 | 3.00 |
| Brother Industries | 0 | 1 | 0 | 0 | 2.00 |
Bel Fuse currently has a consensus target price of $115.00, indicating a potential downside of 27.87%. Given Bel Fuse’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Bel Fuse is more favorable than Brother Industries.
Summary
Bel Fuse beats Brother Industries on 14 of the 17 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 Brother Industries
Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.
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