Critical Analysis: Xenonics (OTCMKTS:XNNHQ) & Kimball Electronics (NASDAQ:KE)

Xenonics (OTCMKTS:XNNHQ) and Kimball Electronics (NASDAQ:KE) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

76.0% of Kimball Electronics shares are held by institutional investors. 8.9% of Xenonics shares are held by company insiders. Comparatively, 2.8% of Kimball Electronics 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.

Volatility & Risk

Xenonics has a beta of 12.46, indicating that its share price is 1,146% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Xenonics and Kimball Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenonics	N/A	N/A	N/A	N/A	N/A
Kimball Electronics	$1.46 billion	0.45	$16.98 million	$0.96	28.00

Kimball Electronics has higher revenue and earnings than Xenonics.

Profitability

This table compares Xenonics and Kimball Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenonics	N/A	N/A	N/A
Kimball Electronics	1.65%	6.09%	3.21%

Analyst Ratings

This is a breakdown of current ratings and target prices for Xenonics and Kimball Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenonics	0	0	0	0	0.00
Kimball Electronics	0	2	2	0	2.50

Kimball Electronics has a consensus target price of $32.00, suggesting a potential upside of 19.05%. Given Kimball Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Kimball Electronics is more favorable than Xenonics.

Summary

Kimball Electronics beats Xenonics on 8 of the 10 factors compared between the two stocks.

About Xenonics

Xenonics Holdings, Inc. designs, manufactures, and markets portable illumination products and low light viewing systems (night vision) in the United States. It offers NightHunter ONE, a lightweight illumination system, which can be used on vehicles, boats, and helicopters; NightHunter EXT, a lightweight illumination system for mounting on heavy guns and for use on stationary platforms, or vehicles, boats, or helicopters; and NightHunter 3 for handheld use or mounting on light, medium, and heavy machine guns or vehicles. The company also provides SuperVision that allows user to see in the dark with clarity than conventional night vision; SuperVision Video Out to connect the video signal to a computer recording device or monitor for surveillance; SuperVision Tactical Packages for law enforcement professionals; and SuperVision Vehicle Patrol Packages to make law enforcement patrol operations safer. It markets its illumination products under the NightHunter brand and night vision products under the SuperVision brand. The company serves military forces; the U.S. Department of Homeland Security; law enforcement, fire, search, and rescue; and commercial markets. Xenonics Holdings, Inc. was founded in 1996 and is headquartered in Carlsbad, California.

About Kimball Electronics

Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.