Critical Contrast: Fortive Corporation (FTV) & Cohu (COHU)
Fortive Corporation (NYSE: FTV) and Cohu (NASDAQ:COHU) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Risk & Volatility
Fortive Corporation has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Cohu has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
Institutional and Insider Ownership
78.6% of Fortive Corporation shares are held by institutional investors. Comparatively, 83.9% of Cohu shares are held by institutional investors. 12.1% of Fortive Corporation shares are held by insiders. Comparatively, 6.0% of Cohu shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Fortive Corporation and Cohu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Fortive Corporation and Cohu’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fortive Corporation||$6.36 billion||3.98||$1.49 billion||$2.54||28.70|
|Cohu||$314.92 million||2.08||$37.41 million||$0.69||35.33|
Fortive Corporation has higher revenue and earnings than Cohu. Fortive Corporation is trading at a lower price-to-earnings ratio than Cohu, indicating that it is currently the more affordable of the two stocks.
Fortive Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Fortive Corporation pays out 11.0% of its earnings in the form of a dividend. Cohu pays out 34.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current recommendations for Fortive Corporation and Cohu, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortive Corporation currently has a consensus target price of $65.22, suggesting a potential downside of 10.52%. Cohu has a consensus target price of $23.75, suggesting a potential downside of 2.58%. Given Cohu’s stronger consensus rating and higher probable upside, analysts clearly believe Cohu is more favorable than Fortive Corporation.
Fortive Corporation beats Cohu on 10 of the 16 factors compared between the two stocks.
About Fortive Corporation
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.
Cohu, Inc. is a supplier of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems used by global semiconductor manufacturers and test subcontractors. It develops, manufactures, sells and services a line of equipment capable of handling a range of integrated circuits and light-emitting diodes. It operates through semiconductor equipment segment. It offers products for the pick-and-place, gravity-feed, test-in-strip and turret handling, MEMS, burn-in and system-level test markets. It sells various products, including Delta MATRiX, Delta Pyramid, Delta Eclipse, Delta LinX, Rasco SO1000, Rasco SO2000, Rasco Saturn and Jupiter, Rasco Jaguar, Ismeca NY32, Ismeca NY20 and Delta Fusion HD. Its manufacturing operations are located in Malacca, Malaysia (handlers); Poway, California (thermal subsystems); Laguna, the Philippines (kits and contactors); Kolbermoor, Germany (handlers), and Osaka, Japan (contactors).
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