Mettler-Toledo International (NYSE: MTD) and EXFO (NASDAQ:EXFO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

93.2% of Mettler-Toledo International shares are owned by institutional investors. Comparatively, 17.0% of EXFO shares are owned by institutional investors. 5.2% of Mettler-Toledo International shares are owned by insiders. Comparatively, 20.0% of EXFO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Mettler-Toledo International and EXFO’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mettler-Toledo International $2.61 billion 6.22 $631.03 million $16.26 38.92
EXFO $243.18 million 0.91 $17.91 million $0.04 101.28

Mettler-Toledo International has higher revenue and earnings than EXFO. Mettler-Toledo International is trading at a lower price-to-earnings ratio than EXFO, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Mettler-Toledo International and EXFO, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mettler-Toledo International 0 3 3 0 2.50
EXFO 0 4 1 0 2.20

Mettler-Toledo International currently has a consensus target price of $541.25, indicating a potential downside of 14.48%. EXFO has a consensus target price of $5.70, indicating a potential upside of 40.74%. Given EXFO’s higher probable upside, analysts plainly believe EXFO is more favorable than Mettler-Toledo International.

Risk & Volatility

Mettler-Toledo International has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, EXFO has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Profitability

This table compares Mettler-Toledo International and EXFO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mettler-Toledo International 16.60% 95.28% 19.80%
EXFO 0.93% 3.25% 2.47%

Summary

Mettler-Toledo International beats EXFO on 11 of the 14 factors compared between the two stocks.

About Mettler-Toledo International

Mettler-Toledo International Inc. is a supplier of precision instruments and services. The Company operates through five segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations and Other. The Company manufactures weighing instruments for use in laboratory, industrial, packaging, logistics and food retailing applications. The Company is also a provider of analytical instruments for use in life science, reaction engineering and real-time analytic systems used in drug and chemical compound development, and process analytics instruments used for in-line measurement in production processes. In addition, the Company is also a supplier of end-of-line inspection systems used in production and packaging for food, pharmaceutical and other industries. The Company serves food and beverage producers; food retailers; chemical, specialty chemicals and cosmetics companies, and the transportation and logistics industry, among others.

About EXFO

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

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