Reviewing Omron (OTCMKTS:OMRNY) & AMETEK (NYSE:AME)

AMETEK (NYSE:AME) and Omron (OTCMKTS:OMRNY) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Insider and Institutional Ownership

87.4% of AMETEK shares are owned by institutional investors. Comparatively, 1.1% of Omron shares are owned by institutional investors. 0.5% of AMETEK shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

AMETEK pays an annual dividend of $1.36 per share and has a dividend yield of 0.5%. Omron pays an annual dividend of $0.47 per share and has a dividend yield of 1.2%. AMETEK pays out 19.9% of its earnings in the form of a dividend. Omron pays out 44.8% 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. AMETEK has raised its dividend for 6 consecutive years.

Earnings & Valuation

This table compares AMETEK and Omron”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMETEK	$7.86 billion	7.31	$1.48 billion	$6.84	36.65
Omron	$5.10 billion	1.55	$188.01 million	$1.05	38.28

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AMETEK and Omron, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMETEK	0	5	11	1	2.76
Omron	0	2	0	0	2.00

AMETEK currently has a consensus price target of $266.69, suggesting a potential upside of 6.39%. Given AMETEK’s stronger consensus rating and higher probable upside, equities analysts clearly believe AMETEK is more favorable than Omron.

Profitability

This table compares AMETEK and Omron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMETEK	20.04%	16.93%	11.26%
Omron	4.04%	3.68%	2.42%

Volatility and Risk

AMETEK has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Omron has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Summary

AMETEK beats Omron on 15 of the 18 factors compared between the two stocks.

About AMETEK

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets; power quality monitoring and c devices, uninterruptible power supplies, programmable power and electromagnetic compatibility test equipment, and sensors for gas turbines and dashboard instruments; heavy trucks, instrumentation, and controls for the food and beverage industries; and aircraft and engine sensors, power supplies, embedded computing, monitoring, fuel and fluid measurement, and data acquisition systems for aerospace and defense industry. Its EMG segment offers engineered medical components and devices, automation solutions, thermal management systems, specialty metals, and electrical interconnects; single-use and consumable surgical instruments, implantable components, and drug delivery systems; engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, and automation; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for thermal management, military and commercial aircraft, and military ground vehicles; motors for commercial appliances, food and beverage machines, hydraulic pumps, and industrial blowers; and operates a network of aviation maintenance, repair, and overhaul facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.