Analyzing AMTEK (AME) and FARO Technologies (FARO)
AMTEK (NYSE: AME) and FARO Technologies (NASDAQ:FARO) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
This table compares AMTEK and FARO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for AMTEK and FARO Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMTEK presently has a consensus price target of $71.33, suggesting a potential upside of 2.65%. FARO Technologies has a consensus price target of $48.80, suggesting a potential downside of 6.06%. Given AMTEK’s stronger consensus rating and higher possible upside, analysts plainly believe AMTEK is more favorable than FARO Technologies.
Volatility and Risk
AMTEK has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.
Earnings and Valuation
This table compares AMTEK and FARO Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|AMTEK||$3.84 billion||4.18||$512.15 million||$2.38||29.20|
|FARO Technologies||$325.58 million||2.67||$11.10 million||$0.00||-5,195,000.00|
AMTEK has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than AMTEK, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
85.3% of AMTEK shares are owned by institutional investors. Comparatively, 93.5% of FARO Technologies shares are owned by institutional investors. 2.1% of AMTEK shares are owned by insiders. Comparatively, 2.4% of FARO Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
AMTEK pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. FARO Technologies does not pay a dividend. AMTEK pays out 15.1% of its earnings in the form of a dividend.
AMTEK beats FARO Technologies on 11 of the 15 factors compared between the two stocks.
AMETEK, Inc. is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company operates through two segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG designs and manufactures instruments for the process, power and industrial and aerospace markets. EIG provides process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor and automation markets. It makes monitoring and metering devices, industrial battery chargers and uninterruptible power supplies, programmable power equipment, electrical test equipment and gas turbine sensors. EMG is a differentiated supplier of precision motion control solutions, thermal management systems, specialty metals and electrical interconnects. Its end markets include medical, automation, petrochemical and other industrial markets. It operates a network of aviation maintenance, repair and overhaul (MRO) facilities.
About FARO Technologies
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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