On Track Innovations (NASDAQ:OTIV) and STMicroelectronics (NYSE:STM) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Institutional & Insider Ownership

3.1% of On Track Innovations shares are owned by institutional investors. Comparatively, 4.1% of STMicroelectronics shares are owned by institutional investors. 1.4% of On Track Innovations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for On Track Innovations and STMicroelectronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Track Innovations 0 1 1 0 2.50
STMicroelectronics 1 6 4 0 2.27

On Track Innovations presently has a consensus target price of $2.00, suggesting a potential upside of 146.91%. STMicroelectronics has a consensus target price of $20.00, suggesting a potential upside of 41.14%. Given On Track Innovations’ stronger consensus rating and higher possible upside, research analysts plainly believe On Track Innovations is more favorable than STMicroelectronics.

Valuation and Earnings

This table compares On Track Innovations and STMicroelectronics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
On Track Innovations $22.38 million 1.49 -$590,000.00 ($0.04) -20.25
STMicroelectronics $8.35 billion 1.52 $802.00 million $0.98 14.46

STMicroelectronics has higher revenue and earnings than On Track Innovations. On Track Innovations is trading at a lower price-to-earnings ratio than STMicroelectronics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares On Track Innovations and STMicroelectronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Track Innovations -5.90% -9.03% -4.07%
STMicroelectronics 12.41% 21.97% 12.53%

Dividends

STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. On Track Innovations does not pay a dividend. STMicroelectronics pays out 20.4% of its earnings in the form of a dividend.

Volatility and Risk

On Track Innovations has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Summary

STMicroelectronics beats On Track Innovations on 11 of the 16 factors compared between the two stocks.

On Track Innovations Company Profile

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide. It operates through Retail and Mass Transit Ticketing; and Petroleum segments. The company offers OTI UNO, a single interface and contactless reader that support the major card associations' applications, as well as wallets such as Apple Pay, Google Pay, and Samsung Pay; OTI TRIO, a near-field communication and contactless reader, which offers three-in-one cashless payment card options comprising magnetic stripe (swipe), contact (chip), and contactless (tap); and OTI Interno, an original equipment manufacturer reader module with integrated antenna used for integration into mass transit validators and terminals. It also provides OTI TeleBox which enables communication between machines primarily for vending machines, kiosks, and meters; OTI GoBox, a machine-to-machine cashless payment and telemetry gateway primarily used to stream Full-HD media and run either Linux or Android; otiMetry, a telemetry solution for smart vending which also enables cashless payments; otiKiosk, a cashless payment acceptance and remote management solution for kiosks and self-service environments; and otiPulse, a cashless payment solution for pulse operated machines. In addition, the company offers ticket vending machines which are encoding and loading electronic card tickets for the public transport and for selling paper tickets, as well as resells tickets through point of sale terminals. Further, it provides EasyFuel Plus, a fuel management solution used to control and manage refueling operations; and MediSmart, an information management and claims submission system for the medical sector. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was founded in 1990 and is headquartered in Rosh Pina, Israel.

STMicroelectronics Company Profile

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems, and assembly and other services. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.

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