FEI Company (NASDAQ: FEIC) and Pitney Bowes (NYSE:PBI) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitabiliy.

Profitability

This table compares FEI Company and Pitney Bowes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FEI Company 9.62% 9.62% 6.97%
Pitney Bowes 3.28% 2,282.68% 5.50%

Institutional and Insider Ownership

97.7% of FEI Company shares are owned by institutional investors. Comparatively, 79.0% of Pitney Bowes shares are owned by institutional investors. 1.0% of FEI Company shares are owned by company insiders. Comparatively, 2.0% of Pitney Bowes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for FEI Company and Pitney Bowes, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FEI Company 0 0 0 0 N/A
Pitney Bowes 0 1 1 0 2.50

Pitney Bowes has a consensus target price of $20.00, indicating a potential upside of 29.20%. Given Pitney Bowes’ higher possible upside, analysts clearly believe Pitney Bowes is more favorable than FEI Company.

Risk and Volatility

FEI Company has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Pitney Bowes has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Earnings & Valuation

This table compares FEI Company and Pitney Bowes’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FEI Company N/A N/A N/A $2.58 41.43
Pitney Bowes $3.40 billion 0.85 $747.15 million $0.54 28.67

Pitney Bowes has higher revenue and earnings than FEI Company. Pitney Bowes is trading at a lower price-to-earnings ratio than FEI Company, indicating that it is currently the more affordable of the two stocks.

Dividends

FEI Company pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Pitney Bowes pays an annual dividend of $0.75 per share and has a dividend yield of 4.8%. FEI Company pays out 46.5% of its earnings in the form of a dividend. Pitney Bowes pays out 138.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

About FEI Company

FEI Company is a supplier of scientific instruments and related services for nanoscale applications and solutions for industry and science. The Company operates through two segments: Industry Group, which consists of customers in semiconductor integrated circuit manufacturing and related industries, such as manufacturers of data storage equipment and other technologies, as well as customers in the oil and gas industry, and Science Group, which includes universities, research laboratories and customers in a range of industries, including metals, automobiles, aerospace, geosciences and forensics. It designs, manufactures and supports the range of microscopy workflows. Its products include transmission electron microscopes (TEMs), which offer an integrated and automated operation; scanning electron microscopes (SEMs), which are used for inspecting topographies of materials; DualBeam systems, which provide solution for three-dimensional microscopy and analysis, and focused ion beam (FIB).

About Pitney Bowes

Pitney Bowes Inc. is a global technology company. The Company offers customer information management, location intelligence and customer engagement products and solutions to help its clients market to their customers, and shipping, mailing, and cross border e-commerce products and solutions that enable the sending of parcels and packages across the globe. The Company’s segments include Small & Medium Business Solutions (SMB), Enterprise Business Solutions and Digital Commerce Solutions. The SMB segment includes North America Mailing and International Mailing business. The Company is engaged in providing a range of equipment, software, supplies and services that enable its clients to create physical and digital mail and evidence. The Enterprise Business Solutions segment includes production mail and presort services business. The Digital Commerce Solutions segment includes software solutions and global e-commerce business.

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