EACO (OTCMKTS: EACO) and Ituran Location and Control Ltd. (US) (NASDAQ:ITRN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
This table compares EACO and Ituran Location and Control Ltd. (US)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ituran Location and Control Ltd. (US)||17.21%||32.30%||19.90%|
Ituran Location and Control Ltd. (US) pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. EACO does not pay a dividend. Ituran Location and Control Ltd. (US) pays out 45.9% of its earnings in the form of a dividend.
Institutional and Insider Ownership
50.4% of Ituran Location and Control Ltd. (US) shares are owned by institutional investors. 97.9% of EACO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
EACO has a beta of -1.33, indicating that its share price is 233% less volatile than the S&P 500. Comparatively, Ituran Location and Control Ltd. (US) has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Earnings and Valuation
This table compares EACO and Ituran Location and Control Ltd. (US)’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EACO||$156.95 million||0.36||$4.05 million||N/A||N/A|
|Ituran Location and Control Ltd. (US)||$238.52 million||3.12||$43.79 million||$2.09||15.14|
Ituran Location and Control Ltd. (US) has higher revenue and earnings than EACO.
This is a summary of recent ratings for EACO and Ituran Location and Control Ltd. (US), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ituran Location and Control Ltd. (US)||0||2||0||0||2.00|
Ituran Location and Control Ltd. (US) has a consensus price target of $36.00, indicating a potential upside of 13.74%. Given Ituran Location and Control Ltd. (US)’s higher possible upside, analysts clearly believe Ituran Location and Control Ltd. (US) is more favorable than EACO.
Ituran Location and Control Ltd. (US) beats EACO on 11 of the 13 factors compared between the two stocks.
EACO Corporation, through its wholly-owned subsidiary, Bisco Industries, Inc., distributes and sells electronic components and fasteners primarily in the United States and Canada. It offers electronic components, including spacers and standoffs, card guides and ejectors, component holders and fuses, circuit board connectors, and cable components, as well as various fasteners and hardware products. The company supplies parts used in the manufacture of products in a range of industries, including aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment, and marine. It also provides customized services and solutions for various production needs comprising special packaging, bin stocking, kitting and assembly, bar coding, electronic requisitioning, integrated supply programs, and others. The company sells its products primarily to the original equipment manufacturers through its sales representatives in its 48 sales offices and 7 distribution centers; and through its Website. EACO Corporation was founded in 1973 and is headquartered in Anaheim, California.
About Ituran Location and Control Ltd. (US)
Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communications products in Israel, Brazil, Argentina, and the United States. The company's Location-Based Services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and personal locator services that allow customers to protect valuable merchandise and equipment. It also offers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connect, an Android platform based car service that provides access to Android market applications and various services through manufacturer interface. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The company's Wireless Communications Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. As of December 31, 2017, it served approximately 180,000 end-users through 38,000 corporate customers. The company was founded in 1994 and is headquartered in Azor, Israel.
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