Head to Head Analysis: FARO Technologies (FARO) versus Kimball Electronics (KE)
FARO Technologies (NASDAQ: FARO) and Kimball Electronics (NASDAQ:KE) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Volatility & Risk
FARO Technologies has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Valuation and Earnings
This table compares FARO Technologies and Kimball Electronics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FARO Technologies||$335.54 million||1.67||$13.50 million||($0.03)||-1,119.63|
|Kimball Electronics||$930.91 million||0.56||$62.96 million||$1.24||15.52|
Kimball Electronics has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than Kimball Electronics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.6% of FARO Technologies shares are held by institutional investors. Comparatively, 56.9% of Kimball Electronics shares are held by institutional investors. 2.4% of FARO Technologies shares are held by insiders. Comparatively, 3.2% of Kimball Electronics shares are held by 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.
This table compares FARO Technologies and Kimball Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for FARO Technologies and Kimball Electronics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FARO Technologies presently has a consensus price target of $41.00, indicating a potential upside of 22.02%. Kimball Electronics has a consensus price target of $17.00, indicating a potential downside of 11.69%. Given FARO Technologies’ higher possible upside, analysts clearly believe FARO Technologies is more favorable than Kimball Electronics.
Kimball Electronics beats FARO Technologies on 8 of the 13 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.
Kimball Electronics Company Profile
Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.
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