Benchmark Electronics (NYSE:BHE) versus Tempo Automation (NASDAQ:TMPO) Critical Survey

Benchmark Electronics (NYSE:BHE – Get Rating) and Tempo Automation (NASDAQ:TMPO – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Benchmark Electronics and Tempo Automation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benchmark Electronics	0	0	2	0	3.00
Tempo Automation	0	1	2	0	2.67

Benchmark Electronics currently has a consensus price target of $34.50, suggesting a potential upside of 54.78%. Tempo Automation has a consensus price target of $3.00, suggesting a potential upside of 770.83%. Given Tempo Automation’s higher probable upside, analysts clearly believe Tempo Automation is more favorable than Benchmark Electronics.

Profitability

This table compares Benchmark Electronics and Tempo Automation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benchmark Electronics	2.36%	7.31%	3.30%
Tempo Automation	N/A	N/A	-428.46%

Insider and Institutional Ownership

93.4% of Benchmark Electronics shares are owned by institutional investors. 1.8% of Benchmark Electronics shares are owned by insiders. Comparatively, 34.2% of Tempo Automation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Benchmark Electronics and Tempo Automation’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Electronics	$2.89 billion	0.28	$68.23 million	$1.97	11.31
Tempo Automation	$12.05 million	0.78	-$144.85 million	N/A	N/A

Benchmark Electronics has higher revenue and earnings than Tempo Automation.

Volatility and Risk

Benchmark Electronics has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Tempo Automation has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Summary

Benchmark Electronics beats Tempo Automation on 8 of the 11 factors compared between the two stocks.

About Benchmark Electronics

(Get Rating)

Benchmark Electronics, Inc. engages in the provision of integrated electronic manufacturing services, engineering and design services, and precision machining services. It operates through the following segments: Americas, Asia, and Europe. The firm offers services to original equipment manufacturers of industrial control telecommunication equipment, computers, and related products for business enterprises, medical devices, and testing and instrumentation products. Its services include comprehensive and integrated design and manufacturing services and solutions from initial product concept to volume production, including direct order fulfillment and aftermarket services. The company was founded by Cary T. Fu, Steven A. Barton and Donald E. Nigbor in 1979 and is headquartered in Tempe, AZ.

About Tempo Automation

(Get Rating)

Tempo Automation Holdings, Inc. manufactures electronic products. The company designs and assembles printed circuit boards. It serves automotive, aviation and defense, consumer electronics, design firms, energy, industrial technology, medical device, semiconductor, and space industries. The company was founded in 2013 and is based in San Francisco, California.