Orbotech (NASDAQ: ORBK) and Hubbell (NYSE:HUBB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Hubbell pays an annual dividend of $2.80 per share and has a dividend yield of 2.5%. Orbotech does not pay a dividend. Hubbell pays out 53.0% of its earnings in the form of a dividend.
Volatility and Risk
Orbotech has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Hubbell has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Earnings and Valuation
This table compares Orbotech and Hubbell’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orbotech||$818.31 million||2.18||$158.40 million||$1.86||19.99|
|Hubbell||$3.56 billion||1.72||$606.70 million||$5.28||21.15|
Hubbell has higher revenue and earnings than Orbotech. Orbotech is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
This table compares Orbotech and Hubbell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Orbotech and Hubbell, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orbotech presently has a consensus target price of $38.83, suggesting a potential upside of 4.42%. Hubbell has a consensus target price of $121.50, suggesting a potential upside of 8.82%. Given Hubbell’s higher probable upside, analysts plainly believe Hubbell is more favorable than Orbotech.
Institutional & Insider Ownership
71.6% of Orbotech shares are held by institutional investors. Comparatively, 86.4% of Hubbell shares are held by institutional investors. 10.4% of Orbotech shares are held by company insiders. Comparatively, 1.3% of Hubbell shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Hubbell beats Orbotech on 9 of the 16 factors compared between the two stocks.
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.
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