FARO Technologies (NASDAQ: FARO) and General Cable (NYSE:BGC) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Volatility and Risk
FARO Technologies has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, General Cable has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500.
General Cable pays an annual dividend of $0.72 per share and has a dividend yield of 3.3%. FARO Technologies does not pay a dividend. General Cable pays out -20.2% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares FARO Technologies and General Cable’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FARO Technologies||$325.58 million||2.68||$11.10 million||$0.00||-5,230,000.00|
|General Cable||$3.86 billion||0.28||-$93.80 million||($3.56)||-6.04|
FARO Technologies has higher earnings, but lower revenue than General Cable. FARO Technologies is trading at a lower price-to-earnings ratio than General Cable, indicating that it is currently the more affordable of the two stocks.
This table compares FARO Technologies and General Cable’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for FARO Technologies and General Cable, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FARO Technologies currently has a consensus target price of $49.80, suggesting a potential downside of 4.78%. Given FARO Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe FARO Technologies is more favorable than General Cable.
Institutional and Insider Ownership
97.6% of FARO Technologies shares are owned by institutional investors. Comparatively, 98.4% of General Cable shares are owned by institutional investors. 2.4% of FARO Technologies shares are owned by insiders. Comparatively, 1.8% of General Cable shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
FARO Technologies beats General Cable on 8 of the 15 factors compared between the two stocks.
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.
About General Cable
General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.
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