Analyzing Fortive (FTV) and Sensata Technologies (ST)

Fortive (NYSE: FTV) and Sensata Technologies (NYSE:ST) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Fortive and Sensata Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortive 0 7 5 0 2.42
Sensata Technologies 0 5 6 0 2.55

Fortive currently has a consensus target price of $76.89, indicating a potential upside of 2.93%. Sensata Technologies has a consensus target price of $56.45, indicating a potential upside of 5.98%. Given Sensata Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Sensata Technologies is more favorable than Fortive.

Profitability

This table compares Fortive and Sensata Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortive 15.69% 30.54% 11.16%
Sensata Technologies 12.35% 25.40% 8.47%

Dividends

Fortive pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Sensata Technologies does not pay a dividend. Fortive pays out 9.7% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Fortive and Sensata Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortive $6.66 billion 3.91 $1.04 billion $2.89 25.85
Sensata Technologies $3.31 billion 2.76 $408.35 million $3.19 16.70

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

Institutional and Insider Ownership

81.3% of Fortive shares are held by institutional investors. 12.1% of Fortive shares are held by company insiders. Comparatively, 1.0% of Sensata Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Fortive has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Sensata Technologies has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Summary

Fortive beats Sensata Technologies on 10 of the 16 factors compared between the two stocks.

Fortive Company Profile

Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Professional Instrumentation segment provides test tools, and thermal imaging and calibration equipment for electrical, industrial, electronic, and calibration applications; online condition-based monitoring equipment; portable gas detection equipment, consumables, and software as a service offerings; subscription-based technical, analytical, and compliance services; and maintenance management software for critical infrastructure in utility, industrial, energy, construction, public safety, mining, and healthcare applications. This segment also provides product realization services and products that help developers and engineers across the end-to-end product creation cycle from concepts to finished products; materials components; and devices that sense, monitor, and control operational or manufacturing variables. This segment markets its products and services under the FLUKE, FLUKE BIOMEDICAL, FLUKE NETWORKS, INDUSTRIAL SCIENTIFIC, LANDAUER, QUALITROL, INVETECH, KEITHLEY, PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY, SONIX, and TEKTRONIX brands. Its Industrial Technologies segment offers solutions and services for use in fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking, and fleet and traffic management under the ANGI, GASBOY, GILBARCO, GILBARCO AUTOTANK, ORPAK, and VEEDER-ROOT brands; and various electromechanical and electronic motion control products, mechanical components, and supplemental braking systems for commercial vehicles under the DYNAPAR, HENGSTLER, JAKE BRAKE, KOLLMORGEN, PORTESCAP, and THOMSON brands. It also offers professional tools, toolboxes, and automotive diagnostic equipment under the MATCO brand; and wheel service equipment under the COATS brand. The company was incorporated in 2016 and is headquartered in Everett, Washington.

Sensata Technologies Company Profile

Sensata Technologies Holding N.V. is an industrial technology company. The Company is engaged in the development, manufacture, and sale of sensors and controls. The Company operates through two segments: Performance Sensing and Sensing Solutions. It produces a range of sensors and controls for applications, such as pressure sensors in automotive systems, thermal circuit breakers in aircraft, and bimetal current and temperature control devices. Its sensors are devices that translate a physical phenomenon, such as pressure or position, into electronic signals that microprocessors can act upon. Its controls are customized devices embedded within systems to protect them from excessive heat or current. Its primary products include low-, medium-, and high-pressure sensors, speed and position sensors, bimetal electromechanical controls, temperature sensors, power conversion and control products, thermal and magnetic-hydraulic circuit breakers, pressure switches and interconnection products.

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