Head-To-Head Comparison: Fanuc (OTCMKTS:FANUY) vs. CECO Environmental (NASDAQ:CECO)

Fanuc (OTCMKTS:FANUY) and CECO Environmental (NASDAQ:CECO) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Risk & Volatility

Fanuc has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, CECO Environmental has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Insider and Institutional Ownership

1.5% of Fanuc shares are owned by institutional investors. Comparatively, 68.1% of CECO Environmental shares are owned by institutional investors. 18.4% of CECO Environmental shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Fanuc and CECO Environmental”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fanuc	$5.70 billion	6.36	$1.10 billion	$0.62	29.74
CECO Environmental	$774.38 million	4.41	$50.05 million	($0.69)	-84.42

Fanuc has higher revenue and earnings than CECO Environmental. CECO Environmental is trading at a lower price-to-earnings ratio than Fanuc, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fanuc and CECO Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fanuc	20.11%	9.60%	8.65%
CECO Environmental	-3.39%	7.36%	3.41%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fanuc and CECO Environmental, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fanuc	0	2	0	1	2.67
CECO Environmental	1	0	8	1	2.90

CECO Environmental has a consensus target price of $102.38, suggesting a potential upside of 75.75%. Given CECO Environmental’s stronger consensus rating and higher possible upside, analysts plainly believe CECO Environmental is more favorable than Fanuc.

Summary

Fanuc beats CECO Environmental on 8 of the 14 factors compared between the two stocks.

About Fanuc

FANUC Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive system, an open platform for the manufacturing industry. FANUC Corporation was incorporated in 1950 and is headquartered in Yamanashi, Japan.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.