Cubic (NASDAQ: GEOS) and Geospace Technologies (NASDAQ:GEOS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

96.8% of Cubic shares are owned by institutional investors. Comparatively, 61.4% of Geospace Technologies shares are owned by institutional investors. 7.9% of Cubic shares are owned by company insiders. Comparatively, 3.9% of Geospace Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Cubic pays an annual dividend of $0.27 per share and has a dividend yield of 0.4%. Geospace Technologies does not pay a dividend. Cubic pays out -65.9% of its earnings in the form of a dividend.

Profitability

This table compares Cubic and Geospace Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cubic 0.57% 1.54% 0.81%
Geospace Technologies -48.46% -20.62% -19.49%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cubic and Geospace Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cubic 0 2 5 0 2.71
Geospace Technologies 0 0 1 0 3.00

Cubic presently has a consensus target price of $70.50, indicating a potential downside of 6.06%. Geospace Technologies has a consensus target price of $17.25, indicating a potential upside of 21.39%. Given Geospace Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Geospace Technologies is more favorable than Cubic.

Volatility and Risk

Cubic has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cubic and Geospace Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cubic $1.49 billion 1.38 -$11.20 million ($0.41) -183.05
Geospace Technologies $73.72 million 2.62 -$56.79 million N/A N/A

Cubic has higher revenue and earnings than Geospace Technologies.

Summary

Cubic beats Geospace Technologies on 10 of the 14 factors compared between the two stocks.

Cubic Company Profile

Cubic Corporation provides various integrated solutions worldwide. Its solutions enhance the situational understanding for transportation, defense, and training customers, as well as for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) customers. The company operates through four segments: Cubic Transportation Systems (CTS), Cubic Global Defense Systems (CGD Systems), Cubic Mission Solutions (CMS), and Cubic Global Defense Services (CGD Services). The CTS segment integrates payment and information technology and services for intelligent travel solutions. It delivers integrated systems for transportation and traffic management; and tools for travelers to choose the smartest and easiest way to travel and pay for their journeys, as well as enables transportation authorities and agencies to manage demand across the entire transportation network. The CGD Systems segment supplies live, virtual, constructive, and game-based training solutions to the U.S. Department of Defense, other U.S. government agencies, and allied nations. The CMS segment offers networked C4ISR solutions for defense, intelligence, security, and commercial missions. The CGD Services segment provides specialized military, security force, and intelligence support services to the U.S. government and allied nations. The company was incorporated in 1949 and is headquartered in San Diego, California.

Geospace Technologies Company Profile

Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through two segments, Seismic and Non-Seismic. The Seismic segment offers land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wires, connectors, telemetry cables, marine streamer retrieval and steering devices, multi-component sensors, seismic borehole acquisition systems, and various other products. The Non-Seismic segment offers electronic pre-press products that employ direct thermal imaging and digital inkjet printing technologies targeted at the commercial graphics, industrial graphics, textile, and flexographic printing industries. This segment also provides other non-seismic products that consist of sensors and tools for vibration monitoring, mine safety application, and earthquake detection; cables for power and communication for the offshore oil and gas, and offshore construction industries; water meter cables and connectors; and other specialty industrial cable and connector products. The company serves seismic contractors, and independent and government-owned oil and gas companies; direct users of equipment; specialized resellers; and specialty manufacturers, research institutions, and industrial product distributors. It operates in the United States, Canada, Asia, Europe, and internationally. Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas.

Receive News & Ratings for Cubic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cubic and related companies with MarketBeat.com's FREE daily email newsletter.