Critical Contrast: Orbotech (ORBK) & Its Competitors
Orbotech (NASDAQ: ORBK) is one of 46 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it weigh in compared to its peers? We will compare Orbotech to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, analyst recommendations, risk and earnings.
Volatility and Risk
Orbotech has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Orbotech’s peers have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.
Earnings & Valuation
This table compares Orbotech and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Orbotech||$818.31 million||$158.40 million||23.17|
|Orbotech Competitors||$1.91 billion||$302.41 million||-36.09|
Orbotech’s peers have higher revenue and earnings than Orbotech. Orbotech is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings and target prices for Orbotech and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orbotech currently has a consensus target price of $41.43, suggesting a potential downside of 3.88%. As a group, “Electrical Components & Equipment” companies have a potential upside of 4.99%. Given Orbotech’s peers higher probable upside, analysts clearly believe Orbotech has less favorable growth aspects than its peers.
Institutional and Insider Ownership
69.9% of Orbotech shares are owned by institutional investors. Comparatively, 66.5% of shares of all “Electrical Components & Equipment” companies are owned by institutional investors. 10.4% of Orbotech shares are owned by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Orbotech and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Orbotech beats its peers on 8 of the 13 factors compared.
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.
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