Vontier (NYSE:VNT) vs. Ouster (NASDAQ:OUST) Critical Analysis

Ouster (NASDAQ:OUST) and Vontier (NYSE:VNT) are both mid-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

Ouster has a beta of 3.47, suggesting that its stock price is 247% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

31.5% of Ouster shares are held by institutional investors. Comparatively, 95.8% of Vontier shares are held by institutional investors. 5.7% of Ouster shares are held by insiders. Comparatively, 1.1% of Vontier shares are held by 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.

Profitability

This table compares Ouster and Vontier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ouster	-20.36%	-11.70%	-9.25%
Vontier	11.27%	39.53%	11.74%

Analyst Recommendations

This is a summary of recent ratings and price targets for Ouster and Vontier, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ouster	1	0	6	0	2.71
Vontier	1	3	4	0	2.38

Ouster currently has a consensus target price of $58.00, suggesting a potential upside of 45.74%. Vontier has a consensus target price of $42.86, suggesting a potential downside of 2.33%. Given Ouster’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ouster is more favorable than Vontier.

Earnings & Valuation

This table compares Ouster and Vontier”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ouster	$169.38 million	16.94	-$60.38 million	($0.69)	-57.68
Vontier	$3.08 billion	1.89	$406.10 million	$2.44	17.98

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

Summary

Vontier beats Ouster on 8 of the 14 factors compared between the two stocks.

About Ouster

Ouster, Inc. develops lidar sensors and software that help machines and infrastructure detect and interpret their surroundings. Its digital lidar products use laser-based sensing to create 3D representations of nearby objects and environments. The company serves customers in areas including industrial automation, robotics, smart infrastructure and automotive applications. Its offerings include lidar sensors and perception software designed to support tasks such as object detection, mapping and navigation.

About Vontier

Vontier Corporation (NYSE: VNT) is a global technology company serving the mobility, convenience retail and commercial transportation industries. Its products and services help businesses manage fueling and energy infrastructure, vehicle maintenance, payments and fleet operations. The company’s offerings include fuel dispensers and payment systems, fuel-management and tank-monitoring technology, fleet telematics, vehicle diagnostic equipment and tools, and software for electric-vehicle charging.