Fortive (FTV) vs. Camtek (CAMT) Critical Survey

Fortive (NYSE: FTV) and Camtek (NASDAQ:CAMT) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Dividends

Fortive pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Camtek pays an annual dividend of $0.14 per share and has a dividend yield of 2.4%. Fortive pays out 10.6% of its earnings in the form of a dividend. Camtek pays out 37.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings and target prices for Fortive and Camtek, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortive 0 7 7 0 2.50
Camtek 0 0 2 0 3.00

Fortive currently has a consensus price target of $69.50, indicating a potential downside of 6.81%. Camtek has a consensus price target of $7.25, indicating a potential upside of 25.00%. Given Camtek’s stronger consensus rating and higher possible upside, analysts clearly believe Camtek is more favorable than Fortive.

Profitability

This table compares Fortive and Camtek’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortive 14.39% 31.67% 11.32%
Camtek 12.61% 15.68% 10.38%

Institutional & Insider Ownership

78.9% of Fortive shares are held by institutional investors. Comparatively, 17.3% of Camtek shares are held by institutional investors. 12.1% of Fortive shares are held by company insiders. Comparatively, 79.4% of Camtek shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Fortive and Camtek’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortive $6.22 billion 4.16 $872.30 million $2.65 28.14
Camtek $109.52 million 1.88 $4.73 million $0.37 15.68

Fortive has higher revenue and earnings than Camtek. Camtek is trading at a lower price-to-earnings ratio than Fortive, indicating that it is currently the more affordable of the two stocks.

Summary

Fortive beats Camtek on 11 of the 15 factors compared between the two stocks.

Fortive Company Profile

Fortive Corporation is a diversified industrial growth company. The Company designs, develops, manufactures and markets professional and engineered products, software and services for a range of end markets. The Company operates through two segments: Professional Instrumentation and Industrial Technologies. The Company’s brands operate in field instrumentation, transportation, sensing, product realization, automation and specialty, and franchise distribution markets. The Professional Instrumentation segment offers essential products, software and services used to create actionable intelligence by measuring and monitoring a range of physical parameters in industrial applications, including electrical current, radio frequency signals, distance, pressure and temperature. The Industrial Technologies segment offers critical technical equipment, components, software and services for manufacturing, repair and transportation markets around the world.

Camtek Company Profile

Camtek Ltd is an Israel-based manufacturer of metrology and inspection equipment and a provider of software solutions. The Company mainly serves the Advanced Packaging, Memory, Complementary Metal Oxide Semiconductor (CMOS) Image Sensors, Micro Electro Mechanical Sensor (MEMS), Radio Frequency (RF) and other segments in the mid end of the semiconductors industry. The Company has more than seven offices around the world and provides tailor-made solutions in line with customers’ requirements. Camtek Ltd’s subsidiaries are: Camtek Europe SA, Camtek Korea Ltd, Camtek South East Asia Pte Ltd, Camtek USA Inc, Sela – Semiconductor Engineering Laboratories USA Inc, Camtek Japan Ltd and Sela Semiconductor Engineering Laboratories Ltd, among others.

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