Cemtrex (NASDAQ: CETX) and Faro Technologies (NASDAQ:FARO) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Earnings & Valuation
This table compares Cemtrex and Faro Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cemtrex||$120.62 million||0.20||$4.38 million||N/A||N/A|
|Faro Technologies||$360.92 million||2.55||-$14.51 million||$0.29||187.41|
Cemtrex has higher earnings, but lower revenue than Faro Technologies.
This table compares Cemtrex and Faro Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Cemtrex has a beta of -0.35, meaning that its stock price is 135% less volatile than the S&P 500. Comparatively, Faro Technologies has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Cemtrex and Faro Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Faro Technologies has a consensus price target of $56.60, suggesting a potential upside of 4.14%. Given Faro Technologies’ higher probable upside, analysts clearly believe Faro Technologies is more favorable than Cemtrex.
Insider & Institutional Ownership
6.2% of Cemtrex shares are held by institutional investors. Comparatively, 92.4% of Faro Technologies shares are held by institutional investors. 45.0% of Cemtrex shares are held by insiders. Comparatively, 3.1% of Faro Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Faro Technologies beats Cemtrex on 7 of the 12 factors compared between the two stocks.
Cemtrex, Inc. provides electronic manufacturing services of electric system assemblies, broad-based industrial services, and industrial air filtration and environmental control equipment and systems worldwide. The company operates in two segments, Electronics Manufacturing Services (EMS) and Industrial Products and Services (IPS). The EMS segment provides electronic manufacturing services, including product design and sustaining engineering, printed circuit board assembly and production, cabling and wire harnessing, systems integration, and comprehensive testing services; and assembled electronic products to OEMs. The IPS segment provides a range of air filtration and environmental control products to various industrial and manufacturing industries; monitoring instruments, software, and systems for measurement of emissions of greenhouse gases, hazardous gases, particulate, and other regulated pollutants used in emissions trading, as well as for industrial processes; and monitoring and analysis equipment for gas and liquid measurement for various downstream oil and gas applications, as well as industrial process applications. This segment also offers single-source services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly; and maintenance and contracting solutions for the machinery, packaging, printing, chemical, and other manufacturing markets. It primarily operates under the Griffin Filters and Advanced Industrial Services brands. The company was formerly known as Diversified American Holding, Inc. and changed its name to Cemtrex, Inc. in December 2004. Cemtrex, Inc. was incorporated in 1998 and is headquartered in Farmingdale, New York.
About Faro Technologies
FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven, three-dimensional (3D) measurement, imaging, and realization systems. The company offers FaroArm, a combination of six or seven-axis, articulated measurement arm, a computer, and CAM2 software programs; and FARO ScanArm, a FaroArm equipped with a hard probe and non-contact laser line probe to measure products. It also provides FARO Gage, a combination of an articulated arm device with a computer and software; FARO Laser Tracker that combines a portable laser measurement tool, a computer, and CAM2 software programs; FARO Cobalt Array Imager, a metrology-grade structured light imager; FARO Tracer, which projects a laser line onto a surface or object; and FARO Focus laser scanner to measure and collect a cloud of data points. In addition, the company offers FARO Scanner Freestyle3DX, a handheld scanner that documents rooms, structures, and objects in 3D, as well as creates high-definition point clouds; and FARO Software, a proprietary computer-aided design-based measurement and laser scanner software. FARO Technologies, Inc. offers its products for manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety, cultural heritage, and other applications. The company sells its products in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom, and the United States. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida.
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