Reviewing FARO Technologies (FARO) & Kyocera Corp (KYO)

Kyocera Corp (NYSE: KYO) and FARO Technologies (NASDAQ:FARO) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Kyocera Corp and FARO Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kyocera Corp 0 1 1 0 2.50
FARO Technologies 0 1 4 0 2.80

FARO Technologies has a consensus target price of $41.00, suggesting a potential upside of 23.12%. Given FARO Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe FARO Technologies is more favorable than Kyocera Corp.

Dividends

Kyocera Corp pays an annual dividend of $0.86 per share and has a dividend yield of 1.4%. FARO Technologies does not pay a dividend. Kyocera Corp pays out 28.3% of its earnings in the form of a dividend.

Profitability

This table compares Kyocera Corp and FARO Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kyocera Corp 8.56% 5.69% 4.52%
FARO Technologies -0.13% -0.13% -0.10%

Insider & Institutional Ownership

0.6% of Kyocera Corp shares are held by institutional investors. Comparatively, 93.2% of FARO Technologies shares are held by institutional investors. 2.4% of FARO Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Kyocera Corp has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kyocera Corp and FARO Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kyocera Corp $13.11 billion 1.72 $1.84 billion $3.04 19.66
FARO Technologies $335.54 million 1.66 $13.50 million ($0.03) -1,109.63

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

Summary

Kyocera Corp beats FARO Technologies on 8 of the 15 factors compared between the two stocks.

Kyocera Corp Company Profile

Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.

FARO Technologies Company Profile

FARO Technologies, Inc. designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. The Company operates in three segments: Factory Metrology, Construction BIM-CIM and Other. It sells its products through a direct sales force across customers in a range of manufacturing, industrial, architecture, surveying, building construction and law enforcement applications. Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for Computer-Aided Design-based inspection and/or factory-level statistical process control and surveying. It operates in international markets throughout the world and maintain sales offices in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the United Kingdom, the United States and Vietnam.

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