Contrasting Kimball Electronics (KE) and FARO Technologies (FARO)
Kimball Electronics (NASDAQ: KE) and FARO Technologies (NASDAQ:FARO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Risk and Volatility
Kimball Electronics has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Kimball Electronics and FARO Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kimball Electronics presently has a consensus target price of $17.00, indicating a potential downside of 13.71%. FARO Technologies has a consensus target price of $41.00, indicating a potential upside of 17.31%. Given FARO Technologies’ higher possible upside, analysts plainly believe FARO Technologies is more favorable than Kimball Electronics.
Earnings and Valuation
This table compares Kimball Electronics and FARO Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kimball Electronics||$930.91 million||0.57||$62.96 million||$1.24||15.89|
|FARO Technologies||$335.54 million||1.74||$13.50 million||($0.03)||-1,164.61|
Kimball Electronics has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than Kimball Electronics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
56.9% of Kimball Electronics shares are owned by institutional investors. Comparatively, 94.6% of FARO Technologies shares are owned by institutional investors. 3.2% of Kimball Electronics shares are owned by company insiders. Comparatively, 2.4% of FARO Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Kimball Electronics and FARO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kimball Electronics beats FARO Technologies on 8 of the 13 factors compared between the two stocks.
About Kimball Electronics
Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.
About FARO Technologies
FARO Technologies, Inc. designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. The Company operates in three segments: Factory Metrology, Construction BIM-CIM and Other. It sells its products through a direct sales force across customers in a range of manufacturing, industrial, architecture, surveying, building construction and law enforcement applications. Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for Computer-Aided Design-based inspection and/or factory-level statistical process control and surveying. It operates in international markets throughout the world and maintain sales offices in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the United Kingdom, the United States and Vietnam.
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