uploads/2015/09/gks37-HURC.jpg

Hurco Shows Strong Relative Earnings Compared to Its Peers

By

Updated

Hurco compared to its peers

Comparing Hurco Companies (HURC) with its peers for earnings in 2Q15, the company maintained a high EPS (earnings per share) of $2.58. Its peers had a lower EPS—Hardinge (HDNG) was -$0.23 and Kennametal (KMT) was -$4.72. Hurco’s current ratio is 3.58. This gives the company more stability in paying short-term liabilities compared to Hardinge at 2.68, Kennametal at 2.61, Lincoln Electric Holdings (LECO) at 2.31, Perceptron (PRCP) at 2.26, and SPX (SPW) at 1.34.

Hurco is less risky in terms of paying long-term debt. Its debt-to-equity ratio was 1.89 in 2Q15.

As a result, Hurco is stable in terms of risk when paying short-term and long-term liabilities. It has the highest EPS.

Article continues below advertisement

ETFs that invest in Hurco

The PowerShares Zacks MicroCap Portfolio (PZI) invests 0.26% of its holdings in Hurco. The ETF tracks an index of US micro-cap stocks. They’re selected through a proprietary process that aims to outperform the US micro-cap market.

The Guggenheim Wilshire MicroCap ETF (WMCR) invests 0.14% of its holdings in Hurco. The ETF tracks a market-cap-weighted index of the lowest 2,500 US stocks by market capitalization of the Wilshire 5000.

The iShares MicroCap ETF (IWC) invests 0.07% of its holdings in Hurco. The ETF tracks a market-cap-weighted index of US micro-cap stocks. The index selects the smallest 1,000 stocks in the Russell 2000 Index.

The WisdomTree SmallCap Earnings ETF (EES) invests 0.03% of its holdings in Hurco. The ETF tracks an index of US small-cap stocks weighted by the firms’ earnings from core operations. The index is a small-cap subset of the WisdomTree Earnings Index.

Comparing ETFs with Hurco

Hurco’s YTD (year-to-date) price movement is -14.36%. It’s lower compared to PZI at -6.83%, WMCR at -2.44%, and IWC at -4.20%.

In regards to the PE (price-to-earnings) ratio, Hurco has 11.26x. This is high compared to WMCR at -23.51x and IWC at -28.83x. PZI has a PE of 25.79x.

According to the above findings, based on price movement, ETFs are way ahead of Hurco. However, in terms of the PE ratio, Hurco has outperformed its ETFs.

Advertisement

More From Market Realist