Interlink Electronics (NASDAQ:LINK – Get Free Report) and Avnet (NASDAQ:AVT – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
95.8% of Avnet shares are held by institutional investors. 77.5% of Interlink Electronics shares are held by company insiders. Comparatively, 2.0% of Avnet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Interlink Electronics and Avnet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Interlink Electronics | -8.95% | -12.38% | -9.81% |
| Avnet | 1.21% | 9.57% | 3.47% |
Earnings & Valuation
This table compares Interlink Electronics and Avnet”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Interlink Electronics | $12.66 million | 5.32 | -$1.62 million | ($0.07) | -61.10 |
| Avnet | $27.63 billion | 0.28 | $334.39 million | $3.99 | 23.30 |
Avnet has higher revenue and earnings than Interlink Electronics. Interlink Electronics is trading at a lower price-to-earnings ratio than Avnet, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Interlink Electronics and Avnet, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Interlink Electronics | 1 | 0 | 0 | 0 | 1.00 |
| Avnet | 1 | 2 | 2 | 1 | 2.50 |
Avnet has a consensus target price of $93.25, indicating a potential upside of 0.30%. Given Avnet’s stronger consensus rating and higher probable upside, analysts plainly believe Avnet is more favorable than Interlink Electronics.
Summary
Avnet beats Interlink Electronics on 12 of the 14 factors compared between the two stocks.
About Interlink Electronics
Interlink Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, firmware, and software into sensor-based products and custom sensor system solutions in the United States, Asia, the Middle East, Europe, and internationally. The company's products include sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. It also provides simple force and piezo sensors to multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, the company offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, pressure mapping, biological monitoring, and others; and embedded firmware development and integration support services. It serves multi-national and start-up companies, technology design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, California.
About Avnet
Avnet, Inc., distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions primarily for industrial applications, as well as embedded display solutions comprising touch and passive displays; and develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and Asia. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.
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