Financial Analysis: Park Electrochemical Corporation (PKE) & IXYS Corporation (NASDAQ:IXYS)

Park Electrochemical Corporation (NYSE: PKE) and IXYS Corporation (NASDAQ:IXYS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Park Electrochemical Corporation and IXYS Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Electrochemical Corporation 0 0 1 0 3.00
IXYS Corporation 0 0 0 0 N/A

Park Electrochemical Corporation presently has a consensus target price of $22.00, suggesting a potential upside of 23.53%. Given Park Electrochemical Corporation’s higher possible upside, analysts plainly believe Park Electrochemical Corporation is more favorable than IXYS Corporation.

Risk and Volatility

Park Electrochemical Corporation has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, IXYS Corporation has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Park Electrochemical Corporation and IXYS Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park Electrochemical Corporation 6.99% 4.92% 2.89%
IXYS Corporation 7.33% 9.40% 6.45%

Earnings & Valuation

This table compares Park Electrochemical Corporation and IXYS Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Park Electrochemical Corporation $110.54 million 3.26 $11.91 million $0.38 46.87
IXYS Corporation $325.03 million 1.61 $43.76 million $0.73 22.05

IXYS Corporation has higher revenue and earnings than Park Electrochemical Corporation. IXYS Corporation is trading at a lower price-to-earnings ratio than Park Electrochemical Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

81.3% of Park Electrochemical Corporation shares are held by institutional investors. Comparatively, 61.1% of IXYS Corporation shares are held by institutional investors. 8.0% of Park Electrochemical Corporation shares are held by company insiders. Comparatively, 23.6% of IXYS Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Park Electrochemical Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. IXYS Corporation does not pay a dividend. Park Electrochemical Corporation pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

IXYS Corporation beats Park Electrochemical Corporation on 8 of the 15 factors compared between the two stocks.

About Park Electrochemical Corporation

Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.

About IXYS Corporation

IXYS Corporation (IXYS) is a multi-market integrated semiconductor company. The Company is engaged in the development, manufacture and marketing of power semiconductors, mixed-signal integrated circuits (ICs), application specific integrated circuits (ASICs), microcontrollers, systems and radio frequency (RF) power semiconductors. Its power semiconductors are sold separately and are also packaged in high power modules that consist of multiple semiconductor dies. Its power metal-oxide-silicon (MOS) transistors operate at greater switching speeds than bipolar transistors. Its ICs address the demand for analog, mixed-signal and digital interface solutions in communication and other industries and include microcontrollers, mixed-signal application-specific ICs. RF power devices switch electricity at the high rates necessary to enable the amplification or reception of radio frequencies. It manufactures and sells laser diode drivers, high voltage pulse generators and modulators.

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