Contrasting Fortive Corp (FTV) and Qorvo (QRVO)
Fortive Corp (NYSE: FTV) and Qorvo (NASDAQ:QRVO) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
This table compares Fortive Corp and Qorvo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Fortive Corp and Qorvo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortive Corp currently has a consensus target price of $60.90, suggesting a potential downside of 6.45%. Qorvo has a consensus target price of $73.82, suggesting a potential upside of 0.77%. Given Qorvo’s stronger consensus rating and higher probable upside, analysts plainly believe Qorvo is more favorable than Fortive Corp.
Valuation and Earnings
This table compares Fortive Corp and Qorvo’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fortive Corp||$6.36 billion||3.55||$1.49 billion||$2.54||25.63|
|Qorvo||$2.97 billion||3.14||$789.88 million||($0.34)||-215.46|
Fortive Corp has higher revenue and earnings than Qorvo. Qorvo is trading at a lower price-to-earnings ratio than Fortive Corp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.7% of Fortive Corp shares are owned by institutional investors. Comparatively, 94.4% of Qorvo shares are owned by institutional investors. 12.1% of Fortive Corp shares are owned by insiders. Comparatively, 0.9% of Qorvo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Fortive Corp has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Fortive Corp pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Qorvo does not pay a dividend. Fortive Corp pays out 11.0% of its earnings in the form of a dividend.
Fortive Corp beats Qorvo on 9 of the 15 factors compared between the two stocks.
Fortive Corp 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.
Qorvo Company Profile
Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America.
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