Cascade Microtech (NASDAQ: CSCD) and Badger Meter (NYSE:BMI) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Cascade Microtech and Badger Meter’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cascade Microtech N/A N/A N/A N/A N/A
Badger Meter $395.15 million 3.32 $77.75 million $1.17 38.46

Badger Meter has higher revenue and earnings than Cascade Microtech.

Dividends

Badger Meter pays an annual dividend of $0.46 per share and has a dividend yield of 1.0%. Cascade Microtech does not pay a dividend. Badger Meter pays out 39.3% of its earnings in the form of a dividend. Badger Meter has raised its dividend for 15 consecutive years.

Profitability

This table compares Cascade Microtech and Badger Meter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cascade Microtech 5.72% 7.19% 5.97%
Badger Meter 8.67% 13.19% 9.52%

Insider and Institutional Ownership

84.1% of Badger Meter shares are owned by institutional investors. 4.5% of Badger Meter shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cascade Microtech and Badger Meter, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cascade Microtech 0 0 4 0 3.00
Badger Meter 0 2 1 0 2.33

Cascade Microtech currently has a consensus price target of $15.08, indicating a potential downside of 31.13%. Badger Meter has a consensus price target of $44.50, indicating a potential downside of 1.11%. Given Badger Meter’s higher possible upside, analysts plainly believe Badger Meter is more favorable than Cascade Microtech.

Summary

Badger Meter beats Cascade Microtech on 9 of the 12 factors compared between the two stocks.

Cascade Microtech Company Profile

Cascade Microtech, Inc. is a designer, developer, manufacturer and marketer of wafer probing, thermal and reliability solutions for the electrical measurement and testing of semiconductor devices. The Company operates in two business segments: Systems and Probes. The Systems business segment is engaged in the sale of probe stations, thermal subsystems and reliability test systems. The Probes segment is engaged in the sale of analytical probes and production probe cards. The Company designs, manufactures and sells multiple product lines, including probe stations, thermal subsystems, reliability test systems, analytical probes, production probe cards, and various services and accessories. Probing systems are used in the development of semiconductor processes and designs. The 1164 Reliability Test System is a modular and scalable test platform that can be used in a range of reliability test applications.

Badger Meter Company Profile

Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, control and communication solutions, serving water utilities, municipalities, and commercial and industrial customers around the world. The Company’s products measure water, oil, chemicals and other fluids, provide and communicate timely measurement data. Its product lines include two categories: sales of water meters and related technologies to municipal water utilities (municipal water), and sales of meters to various industries for water and other fluids (flow instrumentation). The municipal water offering includes mechanical and ultrasonic (electronic) water meters and related technologies and services used by water utilities as the basis for generating water and wastewater. The flow instrumentation category includes the sale of meters and valves around the world to measure and control materials flowing through a pipe or pipeline, including air, steam, oil, and other liquids and gases.

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