Head to Head Analysis: Zebra Technologies Corporation (ZBRA) & Avnet (AVT)
Zebra Technologies Corporation (NASDAQ: ZBRA) and Avnet (NYSE:AVT) are both mid-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Valuation & Earnings
This table compares Zebra Technologies Corporation and Avnet’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Zebra Technologies Corporation||$3.59 billion||1.56||$602.00 million||($2.06)||-51.37|
|Avnet||$26.28 billion||0.18||$990.42 million||$4.17||9.31|
Avnet has higher revenue and earnings than Zebra Technologies Corporation. Zebra Technologies Corporation is trading at a lower price-to-earnings ratio than Avnet, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.1% of Zebra Technologies Corporation shares are held by institutional investors. Comparatively, 98.4% of Avnet shares are held by institutional investors. 2.5% of Zebra Technologies Corporation shares are held by insiders. Comparatively, 1.5% of Avnet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Zebra Technologies Corporation and Avnet, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zebra Technologies Corporation||0||5||4||0||2.44|
Zebra Technologies Corporation presently has a consensus price target of $96.83, suggesting a potential downside of 8.50%. Avnet has a consensus price target of $41.50, suggesting a potential upside of 6.93%. Given Avnet’s higher possible upside, analysts clearly believe Avnet is more favorable than Zebra Technologies Corporation.
Avnet pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. Zebra Technologies Corporation does not pay a dividend. Avnet pays out 17.3% of its earnings in the form of a dividend. Zebra Technologies Corporation has raised its dividend for 3 consecutive years.
This table compares Zebra Technologies Corporation and Avnet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zebra Technologies Corporation||-2.98%||37.96%||6.41%|
Risk and Volatility
Zebra Technologies Corporation has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Avnet has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Zebra Technologies Corporation beats Avnet on 10 of the 18 factors compared between the two stocks.
Zebra Technologies Corporation Company Profile
Zebra Technologies Corporation designs, manufactures and sells a range of automatic identification and data capture (AIDC) products. The Company’s AIDC products include mobile computers, barcode scanners, radio frequency identification (RFID) readers, wireless local area network (WLAN) products, specialty printers for barcode labeling and personal identification, real-time location systems (RTLS), related accessories and supplies, such as self-adhesive labels and other consumables, and utilities and application software. The Company operates through two segments: Enterprise, which comprises its mobile computing, data capture, RFID and WLAN products, and services, and Legacy Zebra, which comprises barcode and card printing, location solutions, supplies and services. The Company’s products are used in automatic identification (auto ID), data collection and personal identification applications.
Avnet Company Profile
Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other services.
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