Methode Electronics, Inc. (MEI) vs Richardson Electronics, Ltd. (RELL)

Methode Electronics, Inc. and Richardson Electronics, Ltd. are both Electronic Components companies. Methode Electronics, Inc. is the larger, with a market value of $519.0M against $251.1M — 2.1× the size. Methode Electronics, Inc. has negative trailing earnings, so its P/E is not meaningful; Richardson Electronics, Ltd. trades at 38.9×. Richardson Electronics, Ltd. grew revenue faster over the last twelve months: 9.41% against 1.36%. Richardson Electronics, Ltd. has the higher net margin (2.79% vs −3.52%) and the higher return on invested capital (3.06% vs 0.28%). Both pay a dividend; Methode Electronics, Inc. yields more (2.67% vs 2.55%). Across the 21 metrics below, Richardson Electronics, Ltd. leads on 14 and Methode Electronics, Inc. on 7.

Valuation

Metric MEI RELL Electronic Components median
P/E n/m 38.93 39.06
P/S 0.50 1.11 3.22
P/B 0.78 1.56 3.30
Price to free cash flow 87.73 n/m 26.65
EV/EBITDA 11.21 21.74 19.69
EV/Sales 0.68 0.98 3.53
Earnings yield (7.17%) 2.57% 1.34%
Free cash flow yield 1.14% (1.42%) 0.40%

Profitability

Metric MEI RELL Electronic Components median
Gross margin 19.77% 31.22% 33.21%
Operating margin 0.36% 2.83% 3.53%
Net margin (3.52%) 2.79% 2.57%
Free cash flow margin 0.57% (1.58%) 0.20%
Return on equity (5.45%) 3.98% 2.60%
Return on assets (2.88%) 3.21% 2.50%
Return on invested capital 0.28% 3.06% 2.28%

Growth

Metric MEI RELL Electronic Components median
Revenue growth (TTM) 1.36% 9.41% 12.01%
EPS growth (last fiscal year) 42.94% 650.00% —
Revenue growth, 5-year CAGR (1.30%) 5.25% 7.19%
Net income growth, 5-year CAGR 0.00% 30.99% 0.00%

Health

Metric MEI RELL Electronic Components median
Debt to equity 0.47 0.00 0.16
Current ratio 2.41 4.75 2.41
Net debt to EBITDA 2.68 (3.10) 0.32

Dividend

Metric MEI RELL Electronic Components median
Dividend yield 2.67% 2.55% 1.18%
Payout ratio 0.36 0.15 0.00

Size

Metric MEI RELL Electronic Components median
Market cap 518.99m 251.14m 780.25m

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