Contrasting Orbotech (ORBK) and Rockwell Automation (NYSE:ROK)
Orbotech (NASDAQ: ORBK) and Rockwell Automation (NYSE:ROK) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
70.7% of Orbotech shares are owned by institutional investors. Comparatively, 73.4% of Rockwell Automation shares are owned by institutional investors. 10.4% of Orbotech shares are owned by insiders. Comparatively, 1.7% of Rockwell Automation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Orbotech and Rockwell Automation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Orbotech and Rockwell Automation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orbotech currently has a consensus price target of $38.83, suggesting a potential upside of 4.53%. Rockwell Automation has a consensus price target of $148.31, suggesting a potential downside of 8.26%. Given Orbotech’s stronger consensus rating and higher possible upside, equities analysts clearly believe Orbotech is more favorable than Rockwell Automation.
Earnings & Valuation
This table compares Orbotech and Rockwell Automation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orbotech||$818.31 million||2.17||$158.40 million||$1.86||19.97|
|Rockwell Automation||$6.18 billion||3.36||$1.22 billion||$6.20||26.07|
Rockwell Automation has higher revenue and earnings than Orbotech. Orbotech is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Orbotech has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Rockwell Automation pays an annual dividend of $3.04 per share and has a dividend yield of 1.9%. Orbotech does not pay a dividend. Rockwell Automation pays out 49.0% of its earnings in the form of a dividend. Orbotech has increased its dividend for 7 consecutive years.
Rockwell Automation beats Orbotech on 11 of the 17 factors compared between the two stocks.
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
About Rockwell Automation
Rockwell Automation, Inc. (Rockwell Automation) is a provider of industrial automation power, control and information solutions for manufacturers. The Company operates through two segments: Architecture & Software and Control Products & Solutions. The Architecture & Software segment contains various hardware, software and communication components of the Company’s integrated control and information architecture capable of controlling the customer’s industrial processes and connecting with their manufacturing enterprise. Architecture & Software has a portfolio of products, including Control platforms that perform multiple control disciplines and monitoring of applications, including discrete, batch and continuous process, drives control, motion control and machine safety control. The Control Products & Solutions segment portfolio includes low and medium voltage electro-mechanical and electronic motor starters, signaling devices, termination and protection devices, relays and timers.
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