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Contrasting Hollysys Automation Technologies (HOLI) and GrafTech (EAF)

Hollysys Automation Technologies (NASDAQ: HOLI) and GrafTech (NYSE:EAF) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

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65.8% of Hollysys Automation Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Hollysys Automation Technologies and GrafTech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hollysys Automation Technologies 1 0 3 0 2.50
GrafTech 0 0 5 0 3.00

Hollysys Automation Technologies currently has a consensus price target of $20.77, indicating a potential downside of 16.75%. GrafTech has a consensus price target of $25.25, indicating a potential upside of 27.65%. Given GrafTech’s stronger consensus rating and higher probable upside, analysts clearly believe GrafTech is more favorable than Hollysys Automation Technologies.

Dividends

Hollysys Automation Technologies pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. GrafTech does not pay a dividend. Hollysys Automation Technologies pays out 10.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Hollysys Automation Technologies and GrafTech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hollysys Automation Technologies $431.94 million 3.49 $68.94 million $1.16 21.51
GrafTech $550.77 million 10.85 $7.98 million N/A N/A

Hollysys Automation Technologies has higher earnings, but lower revenue than GrafTech.

Profitability

This table compares Hollysys Automation Technologies and GrafTech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hollysys Automation Technologies 18.89% 12.72% 8.71%
GrafTech N/A N/A N/A

About Hollysys Automation Technologies

Hollysys Automation Technologies Ltd. is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.

About GrafTech

GrafTech International Ltd. researches, develops, manufactures, and sells synthetic and natural graphite and carbon based products worldwide. It offers graphite electrodes, which are components of the conductive power systems used to produce steel and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes. The company sells its products primarily through direct sales force, independent sales representatives, and distributors. The company was founded in 1886 and is headquartered in Independence, Ohio. GrafTech International Ltd. is a subsidiary of BCP IV GrafTech Holdings LP.