Financial Analysis: II-VI (IIVI) & Sensata Technologies Holding N.V. (ST)

II-VI (NASDAQ: IIVI) and Sensata Technologies Holding N.V. (NYSE:ST) are both mid-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares II-VI and Sensata Technologies Holding N.V.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
II-VI $972.05 million 2.29 $179.14 million $1.48 23.82
Sensata Technologies Holding N.V. $3.23 billion 2.30 $814.87 million $1.68 25.83

Sensata Technologies Holding N.V. has higher revenue and earnings than II-VI. II-VI is trading at a lower price-to-earnings ratio than Sensata Technologies Holding N.V., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

77.7% of II-VI shares are owned by institutional investors. 6.8% of II-VI shares are owned by insiders. Comparatively, 1.0% of Sensata Technologies Holding N.V. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

II-VI has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Sensata Technologies Holding N.V. has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares II-VI and Sensata Technologies Holding N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
II-VI 9.80% 12.94% 8.16%
Sensata Technologies Holding N.V. 8.91% 26.18% 8.21%

Analyst Recommendations

This is a summary of recent recommendations for II-VI and Sensata Technologies Holding N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
II-VI 0 1 4 0 2.80
Sensata Technologies Holding N.V. 0 3 4 0 2.57

II-VI currently has a consensus price target of $44.70, indicating a potential upside of 26.81%. Sensata Technologies Holding N.V. has a consensus price target of $48.86, indicating a potential upside of 12.57%. Given II-VI’s stronger consensus rating and higher possible upside, equities analysts clearly believe II-VI is more favorable than Sensata Technologies Holding N.V..

Summary

Sensata Technologies Holding N.V. beats II-VI on 7 of the 13 factors compared between the two stocks.

II-VI Company Profile

II-VI Incorporated develops and manufactures engineered materials, optoelectronic components and products. The Company has three segments: II-VI Laser Solutions, II-VI Photonics and II-VI Performance Products. The II-VI Laser Solutions segment designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used in carbon dioxide (CO2) lasers, fiber-delivered beam delivery systems and processing tools and direct diode lasers for industrial lasers sold under the II-VI HIGHYAG and II-VI Laser Enterprise brand names. The II-VI Photonics segment manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other consumer and commercial applications. The II-VI Performance Products segment designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications.

Sensata Technologies Holding N.V. Company Profile

Sensata Technologies Holding N.V. is an industrial technology company. The Company is engaged in the development, manufacture, and sale of sensors and controls. The Company operates through two segments: Performance Sensing and Sensing Solutions. It produces a range of sensors and controls for applications, such as pressure sensors in automotive systems, thermal circuit breakers in aircraft, and bimetal current and temperature control devices. Its sensors are devices that translate a physical phenomenon, such as pressure or position, into electronic signals that microprocessors can act upon. Its controls are customized devices embedded within systems to protect them from excessive heat or current. Its primary products include low-, medium-, and high-pressure sensors, speed and position sensors, bimetal electromechanical controls, temperature sensors, power conversion and control products, thermal and magnetic-hydraulic circuit breakers, pressure switches and interconnection products.

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