Critical Comparison: Thermon Group (NYSE:THR) & Frequency Electronics (NASDAQ:FEIM)

Insider and Institutional Ownership

99.8% of Thermon Group shares are owned by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are owned by institutional investors. 2.5% of Thermon Group shares are owned by company insiders. Comparatively, 26.1% of Frequency Electronics 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.

Profitability

This table compares Thermon Group and Frequency Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thermon Group	10.74%	13.08%	8.40%
Frequency Electronics	34.09%	53.83%	27.82%

Volatility & Risk

Thermon Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Valuation & Earnings

This table compares Thermon Group and Frequency Electronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thermon Group	$498.21 million	1.89	$53.51 million	$1.57	18.04
Frequency Electronics	$69.81 million	3.88	$23.69 million	$2.47	11.28

Thermon Group has higher revenue and earnings than Frequency Electronics. Frequency Electronics is trading at a lower price-to-earnings ratio than Thermon Group, indicating that it is currently the more affordable of the two stocks.

Summary

Frequency Electronics beats Thermon Group on 6 of the 11 factors compared between the two stocks.

About Thermon Group

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It offers heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services. The company also provides controls, monitoring, and software systems for the control and management of a heat trace system; environmental heating solutions under the Ruffneck, Norsemen, and Catadyne brands; process heating solutions under the Caloritech brand name; filtration solutions under the 3L Filters brand; rail and transit solutions under the Hellfire, Velocity, ArcticSense, and other brand names; and boilers under the Vapor Power, Precision Boilers, and Caloritech brands. In addition, it offers project services; transportation heating products, including track and switch heaters, accessories, control panels, rail heaters, gas blower accessories, and air curtains; transit heaters; and velocity heat products. Further, the company offers temporary power solutions; heating systems, such as engineered electric heat, explosion proof gas catalytic heaters, heaters for harshest environments, methane abatement, and engineered filtration system; electrically, steam, and fluid heated tubing bundles; and pre-insulated tubing and system accessories tubing bundles. It serves chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, energy transition/decarbonization, mining and mineral processing, maritime/shipbuilding, semiconductors, pharmaceutical and biotechnology, food and beverage, data centers, and renewables industries through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is headquartered in Austin, Texas.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.