Comparing FARO Technologies (FARO) and Smith (A.O.) Corporation (AOS)
FARO Technologies (NASDAQ: FARO) and Smith (A.O.) Corporation (NYSE:AOS) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Smith (A.O.) Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. FARO Technologies does not pay a dividend. Smith (A.O.) Corporation pays out 28.4% of its earnings in the form of a dividend. Smith (A.O.) Corporation has increased its dividend for 11 consecutive years.
Risk & Volatility
FARO Technologies has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Smith (A.O.) Corporation has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.
Valuation and Earnings
This table compares FARO Technologies and Smith (A.O.) Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FARO Technologies||$335.54 million||1.88||$13.50 million||($0.03)||-1,259.58|
|Smith (A.O.) Corporation||$2.86 billion||3.71||$549.50 million||$1.97||31.19|
Smith (A.O.) Corporation has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than Smith (A.O.) Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.6% of FARO Technologies shares are owned by institutional investors. Comparatively, 74.0% of Smith (A.O.) Corporation shares are owned by institutional investors. 2.4% of FARO Technologies shares are owned by company insiders. Comparatively, 1.3% of Smith (A.O.) Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares FARO Technologies and Smith (A.O.) Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Smith (A.O.) Corporation||12.10%||22.25%||11.89%|
This is a summary of current ratings and recommmendations for FARO Technologies and Smith (A.O.) Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Smith (A.O.) Corporation||0||2||5||0||2.71|
FARO Technologies presently has a consensus price target of $39.40, indicating a potential upside of 4.23%. Smith (A.O.) Corporation has a consensus price target of $61.60, indicating a potential upside of 0.24%. Given FARO Technologies’ higher possible upside, equities research analysts plainly believe FARO Technologies is more favorable than Smith (A.O.) Corporation.
Smith (A.O.) Corporation beats FARO Technologies on 12 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.
Smith (A.O.) Corporation Company Profile
A. O. Smith Corporation operates through two segments: North America and Rest of World. The Company’s Rest of World segment primarily consists of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas, gas tankless and electric water heaters, as well as water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Its North America segment manufactures and globally markets specialty commercial water heating equipment, condensing and non-condensing boilers and water systems tanks. It also manufactures and markets in-home air purification products in China. It serves residential and commercial end markets in North America with a range of products, which include water heaters, boilers and other. It supplies water heaters to the residential market in China with a broad product offering, including electric, gas, gas tankless, heat pump and solar units, as well as combi boilers.
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