Comparing Undervalued Electronics Manufacturing Stocks: EnerSys (ENS) vs. ABB (ABBNY)
For investors with a keen interest in the electronics manufacturing sector, two companies that have undoubtedly piqued their curiosity are EnerSys (ENS) and ABB (ABBNY). Both these companies have a significant presence in the industry and offer intriguing investment opportunities. In this blog post, we will delve deeper into the financials, growth prospects, and competitive advantages of each company to help investors make an informed decision.
EnerSys (ENS): An Overview
EnerSys is a global leader in stored energy solutions for industrial applications. The company manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery management systems. EnerSys’ product portfolio caters to various industries, including telecommunications, transportation, utilities, oil & gas, mining, and aerospace. In 2020, the company reported revenues of $3.3 billion.
Financials and Growth Prospects
EnerSys’ financials have been steady, with revenue growth averaging around 2% over the past five years. The company’s net income has been volatile, with earnings per share (EPS) ranging from a low of $1.46 in 2016 to a high of $3.57 in 2018. EnerSys’ current EPS is $2.35, and the company is expected to grow its EPS by 10% in 2021. The stock is currently trading at around $40 per share.
Competitive Advantages
EnerSys’ competitive advantages include its extensive global presence, a broad and diverse product portfolio, and a focus on innovation. The company has manufacturing facilities and sales offices in over 100 countries, enabling it to cater to a wide range of customers and industries. EnerSys’ product portfolio includes batteries for various applications, making it a one-stop-shop for customers. The company invests heavily in research and development, with an R&D budget of around $50 million per year.
ABB (ABBNY): An Overview
ABB is a leading technology company that provides industrial automation and electrification solutions. The company operates in various industries, including power generation, transmission and distribution, industrial automation, and robotics and motion. In 2020, ABB reported revenues of $22.4 billion.
Financials and Growth Prospects
ABB’s financials have been promising, with revenue growth averaging around 3% over the past five years. The company’s net income has been increasing steadily, with EPS growing from $1.31 in 2016 to $1.78 in 2020. ABB’s current EPS is $1.78, and the company is expected to grow its EPS by 12% in 2021. The stock is currently trading at around $35 per share.
Competitive Advantages
ABB’s competitive advantages include its broad technology portfolio, global presence, and focus on innovation. The company offers a range of products and services, including power generation, transmission and distribution, industrial automation, and robotics and motion. ABB has a strong global presence, with operations in over 100 countries. The company invests heavily in research and development, with an R&D budget of around $1.5 billion per year.
Impact on Individuals and the World
For individuals, investing in either EnerSys or ABB depends on their investment goals, risk tolerance, and investment horizon. Both companies offer promising growth prospects, but EnerSys may be a better option for those looking for a more stable investment with consistent revenue growth. ABB, on the other hand, may be a better choice for those seeking higher growth potential and a more diversified portfolio.
At a global level, the electronics manufacturing sector is expected to grow significantly in the coming years, driven by the increasing demand for electronics in various industries. Companies like EnerSys and ABB, with their innovative products and strong global presence, are well-positioned to capitalize on this trend. The investment in these companies can contribute to economic growth, job creation, and technological advancements.
Conclusion
In conclusion, both EnerSys and ABB offer compelling investment opportunities for those interested in the electronics manufacturing sector. While EnerSys may be a better choice for those seeking a more stable investment, ABB may be a better option for those seeking higher growth potential. Ultimately, investors should conduct thorough research and consult with financial advisors before making any investment decisions. The investment in these companies can contribute to economic growth, job creation, and technological advancements, making them valuable additions to any investment portfolio.
- EnerSys: A global leader in stored energy solutions with a diverse product portfolio and a focus on innovation.
- ABB: A leading technology company offering industrial automation and electrification solutions with a broad technology portfolio and a focus on innovation.
- Both companies offer promising growth prospects, but EnerSys may be a better choice for those seeking a more stable investment, while ABB may be a better option for those seeking higher growth potential.
- Investing in these companies can contribute to economic growth, job creation, and technological advancements.
