Analyzing Fabrinet (NYSE:FN) and IEH (OTCMKTS:IEHC)

IEH (OTCMKTS:IEHC) and Fabrinet (NYSE:FN) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Institutional and Insider Ownership

97.4% of Fabrinet shares are owned by institutional investors. 28.1% of IEH shares are owned by company insiders. Comparatively, 0.2% of Fabrinet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

IEH has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for IEH and Fabrinet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IEH	0	1	0	0	2.00
Fabrinet	0	3	6	1	2.80

Fabrinet has a consensus target price of $626.12, indicating a potential upside of 99.49%. Given Fabrinet’s stronger consensus rating and higher probable upside, analysts plainly believe Fabrinet is more favorable than IEH.

Profitability

This table compares IEH and Fabrinet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IEH	0.04%	0.06%	0.05%
Fabrinet	10.19%	21.23%	13.96%

Earnings and Valuation

This table compares IEH and Fabrinet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IEH	$29.42 million	2.46	-$1.30 million	($0.01)	-2,911.00
Fabrinet	$4.64 billion	2.42	$473.03 million	$13.05	24.05

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

Summary

Fabrinet beats IEH on 13 of the 15 factors compared between the two stocks.

About IEH

IEH Corporation designs, develops, manufactures, and sells printed circuit board connectors and custom interconnects for high performance applications in the United States and internationally. The company's products are used as basic components of larger assemblies of finished goods. It markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to defense, aerospace, medical, industrial, test equipment, space, and commercial electronic markets. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1941 and is based in Brooklyn, New York.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in Grand Cayman, the Cayman Islands.