Analyzing Fabrinet (FN) & Sensata Technologies Holding N.V. (ST)
Fabrinet (NYSE: FN) and Sensata Technologies Holding N.V. (NYSE:ST) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, risk, valuation, analyst recommendations and institutional ownership.
This table compares Fabrinet and Sensata Technologies Holding N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sensata Technologies Holding N.V.||8.91%||26.18%||8.21%|
Earnings and Valuation
This table compares Fabrinet and Sensata Technologies Holding N.V.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fabrinet||$1.33 billion||1.19||$121.84 million||$2.38||17.76|
|Sensata Technologies Holding N.V.||$3.23 billion||2.39||$814.87 million||$1.68||26.80|
Sensata Technologies Holding N.V. has higher revenue and earnings than Fabrinet. Fabrinet is trading at a lower price-to-earnings ratio than Sensata Technologies Holding N.V., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.7% of Fabrinet shares are held by institutional investors. 4.3% of Fabrinet shares are held by company insiders. Comparatively, 1.0% of Sensata Technologies Holding N.V. shares are held 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.
Risk & Volatility
Fabrinet has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Sensata Technologies Holding N.V. has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Fabrinet and Sensata Technologies Holding N.V., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sensata Technologies Holding N.V.||0||3||4||0||2.57|
Fabrinet presently has a consensus target price of $53.55, suggesting a potential upside of 26.72%. Sensata Technologies Holding N.V. has a consensus target price of $48.86, suggesting a potential upside of 8.52%. Given Fabrinet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Fabrinet is more favorable than Sensata Technologies Holding N.V..
Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company’s customer base includes companies in industries that require precision manufacturing capabilities, such as optical communications, industrial lasers, automotive, medical and sensors. Its customers in these industries support end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.
About Sensata Technologies Holding N.V.
Sensata Technologies Holding N.V. is an industrial technology company. The Company is engaged in the development, manufacture, and sale of sensors and controls. The Company operates through two segments: Performance Sensing and Sensing Solutions. It produces a range of sensors and controls for applications, such as pressure sensors in automotive systems, thermal circuit breakers in aircraft, and bimetal current and temperature control devices. Its sensors are devices that translate a physical phenomenon, such as pressure or position, into electronic signals that microprocessors can act upon. Its controls are customized devices embedded within systems to protect them from excessive heat or current. Its primary products include low-, medium-, and high-pressure sensors, speed and position sensors, bimetal electromechanical controls, temperature sensors, power conversion and control products, thermal and magnetic-hydraulic circuit breakers, pressure switches and interconnection products.
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