Critical Analysis: Orbotech (ORBK) & AMTEK (AME)
Orbotech (NASDAQ: ORBK) and AMTEK (NYSE:AME) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Risk & Volatility
Orbotech has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, AMTEK has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Earnings and Valuation
This table compares Orbotech and AMTEK’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orbotech||$818.31 million||2.20||$158.40 million||$1.86||20.20|
|AMTEK||$3.99 billion||3.62||$1.04 billion||$2.28||27.42|
AMTEK has higher revenue and earnings than Orbotech. Orbotech is trading at a lower price-to-earnings ratio than AMTEK, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
71.6% of Orbotech shares are owned by institutional investors. Comparatively, 89.5% of AMTEK shares are owned by institutional investors. 10.4% of Orbotech shares are owned by insiders. Comparatively, 2.1% of AMTEK shares are owned 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.
AMTEK pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Orbotech does not pay a dividend. AMTEK pays out 15.8% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Orbotech and AMTEK, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orbotech presently has a consensus price target of $38.83, indicating a potential upside of 3.36%. AMTEK has a consensus price target of $64.40, indicating a potential upside of 3.02%. Given Orbotech’s higher probable upside, equities analysts plainly believe Orbotech is more favorable than AMTEK.
This table compares Orbotech and AMTEK’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AMTEK beats Orbotech on 12 of the 16 factors compared between the two stocks.
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
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.
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