Comparing Amphenol (NYSE:APH) & Autoscope Technologies (NASDAQ:AATC)

Autoscope Technologies (NASDAQ:AATC) and Amphenol (NYSE:APH) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider and Institutional Ownership

97.0% of Amphenol shares are owned by institutional investors. 21.6% of Autoscope Technologies shares are owned by insiders. Comparatively, 1.4% of Amphenol shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Autoscope Technologies and Amphenol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autoscope Technologies	37.59%	27.06%	23.97%
Amphenol	17.73%	39.87%	14.80%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Autoscope Technologies and Amphenol, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autoscope Technologies	0	0	0	0	0.00
Amphenol	0	1	14	1	3.00

Amphenol has a consensus target price of $191.67, indicating a potential upside of 22.01%. Given Amphenol’s stronger consensus rating and higher possible upside, analysts plainly believe Amphenol is more favorable than Autoscope Technologies.

Risk and Volatility

Autoscope Technologies has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Amphenol has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Valuation & Earnings

This table compares Autoscope Technologies and Amphenol”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autoscope Technologies	$8.87 million	3.56	$6.62 million	$0.26	22.02
Amphenol	$23.09 billion	8.39	$4.27 billion	$3.99	39.37

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

Dividends

Autoscope Technologies pays an annual dividend of $0.60 per share and has a dividend yield of 10.5%. Amphenol pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Autoscope Technologies pays out 230.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amphenol pays out 25.1% of its earnings in the form of a dividend. Autoscope Technologies has raised its dividend for 1 consecutive years. Autoscope Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Amphenol beats Autoscope Technologies on 13 of the 18 factors compared between the two stocks.

About Autoscope Technologies

Autoscope Technologies Corporation develops and markets video and radar processing products for use in intersection control, highway, bridge and tunnel traffic management, and traffic data collection applications in the Asia Pacific, Europe, the Middle East, and North America. It operates in two segments, Intersection and Highway. The company provides Autoscope video systems that process video input from a traffic scene in real time and extracts the traffic data, including vehicle presence, bicycle presence/differentiation, counts, speed, length, time occupancy, turning movements, and flow rate; and RTMS radar systems that use radar to measure vehicle presence, volume, occupancy, speed, and classification information for roadway monitoring applications. It also offers IntellitraffiQ software that provides traffic measurement and data collection across large and small areas. The company markets and sells its products to end users comprising federal, state, city, and county departments of transportation, port, highway, tunnel, and other transportation authorities, as well as system integrators or other suppliers of systems and services who are operating under subcontracts in connection with road construction contracts. Autoscope Technologies Corporation was founded in 1984 and is headquartered in Minneapolis, Minnesota.

About Amphenol

Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.