Head to Head Review: EACO (OTCMKTS:EACO) and Taitron Components (TAIT)

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EACO (OTCMKTS:EACO) and Taitron Components (NASDAQ:TAIT) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares EACO and Taitron Components’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EACO 3.79% 19.32% 10.33%
Taitron Components 10.38% 6.54% 5.90%

Insider and Institutional Ownership

10.9% of Taitron Components shares are held by institutional investors. 97.9% of EACO shares are held by company insiders. Comparatively, 60.0% of Taitron Components shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares EACO and Taitron Components’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EACO $193.28 million 0.34 $6.94 million N/A N/A
Taitron Components $7.62 million 1.38 $700,000.00 N/A N/A

EACO has higher revenue and earnings than Taitron Components.

Volatility and Risk

EACO has a beta of -1.04, meaning that its stock price is 204% less volatile than the S&P 500. Comparatively, Taitron Components has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Dividends

Taitron Components pays an annual dividend of $0.12 per share and has a dividend yield of 6.4%. EACO does not pay a dividend. Taitron Components has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for EACO and Taitron Components, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EACO 0 0 0 0 N/A
Taitron Components 0 0 0 0 N/A

Summary

Taitron Components beats EACO on 7 of the 12 factors compared between the two stocks.

About EACO

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 and distribution centers; and through its Website. EACO Corporation was founded in 1973 and is headquartered in Anaheim, California.

About Taitron Components

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, passive components, transistors, and diodes. The company also provides value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM services for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Mexico, Taiwan, and internationally. The company has strategic alliances with Teamforce Co. Ltd.; Grand Shine Management Limited; and Zowie Technology Corporation. Taitron Components Incorporated was founded in 1989 and is headquartered in Valencia, California.

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