FARO Technologies (NASDAQ: FARO) and Kyocera Corporation (NYSE:KYO) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitabiliy.

Profitability

This table compares FARO Technologies and Kyocera Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FARO Technologies 1.98% 1.92% 1.54%
Kyocera Corporation 7.27% 4.30% 3.35%

Volatility & Risk

FARO Technologies has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Kyocera Corporation has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Insider & Institutional Ownership

93.9% of FARO Technologies shares are held by institutional investors. Comparatively, 0.6% of Kyocera Corporation shares are held by institutional investors. 2.4% of FARO Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares FARO Technologies and Kyocera Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FARO Technologies $331.40 million 1.99 $21.45 million $0.39 101.54
Kyocera Corporation $12.65 billion 1.73 $1.64 billion $2.62 22.16

Kyocera Corporation has higher revenue and earnings than FARO Technologies. Kyocera Corporation is trading at a lower price-to-earnings ratio than FARO Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

Kyocera Corporation pays an annual dividend of $0.86 per share and has a dividend yield of 1.5%. FARO Technologies does not pay a dividend. Kyocera Corporation pays out 32.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for FARO Technologies and Kyocera Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FARO Technologies 0 0 4 0 3.00
Kyocera Corporation 0 1 1 0 2.50

FARO Technologies currently has a consensus target price of $40.67, suggesting a potential upside of 2.69%. Given FARO Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe FARO Technologies is more favorable than Kyocera Corporation.

Summary

FARO Technologies beats Kyocera Corporation on 9 of the 16 factors compared between the two stocks.

FARO Technologies Company Profile

FARO Technologies, Inc. designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. The Company operates in three segments: Factory Metrology, Construction BIM-CIM and Other. It sells its products through a direct sales force across customers in a range of manufacturing, industrial, architecture, surveying, building construction and law enforcement applications. Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for Computer-Aided Design-based inspection and/or factory-level statistical process control and surveying. It operates in international markets throughout the world and maintain sales offices in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the United Kingdom, the United States and Vietnam.

Kyocera Corporation Company Profile

Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.

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