Contrasting Emerson Electric (EMR) and FARO Technologies (FARO)
Emerson Electric (NYSE: EMR) and FARO Technologies (NASDAQ:FARO) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
This table compares Emerson Electric and FARO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Emerson Electric and FARO Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Emerson Electric||$14.76 billion||2.80||$3.18 billion||$2.25||28.65|
|FARO Technologies||$335.54 million||2.58||$13.50 million||$0.00||-5,180,000.00|
Emerson Electric has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than Emerson Electric, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Emerson Electric and FARO Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Emerson Electric currently has a consensus target price of $64.45, suggesting a potential downside of 0.01%. FARO Technologies has a consensus target price of $48.80, suggesting a potential downside of 5.79%. Given Emerson Electric’s higher possible upside, equities research analysts plainly believe Emerson Electric is more favorable than FARO Technologies.
Insider and Institutional Ownership
70.0% of Emerson Electric shares are held by institutional investors. Comparatively, 94.7% of FARO Technologies shares are held by institutional investors. 0.8% of Emerson Electric shares are held by insiders. Comparatively, 2.4% of FARO Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Emerson Electric pays an annual dividend of $1.92 per share and has a dividend yield of 3.0%. FARO Technologies does not pay a dividend. Emerson Electric pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FARO Technologies has increased its dividend for 60 consecutive years.
Risk and Volatility
Emerson Electric has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Emerson Electric beats FARO Technologies on 9 of the 15 factors compared between the two stocks.
Emerson Electric Company Profile
Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.
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.
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