Financial Comparison: GlobalFoundries (NASDAQ:GFS) and Coda Octopus Group (NASDAQ:CODA)

Coda Octopus Group (NASDAQ:CODA) and GlobalFoundries (NASDAQ:GFS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Insider and Institutional Ownership

20.1% of Coda Octopus Group shares are held by institutional investors. 21.8% of Coda Octopus Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Coda Octopus Group and GlobalFoundries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coda Octopus Group	$26.56 million	6.34	$4.13 million	$0.36	41.53
GlobalFoundries	$6.79 billion	3.88	$885.00 million	$1.59	29.80

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

Analyst Ratings

This is a summary of recent recommendations for Coda Octopus Group and GlobalFoundries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coda Octopus Group	0	1	1	0	2.50
GlobalFoundries	1	13	6	0	2.25

GlobalFoundries has a consensus target price of $46.13, suggesting a potential downside of 2.63%. Given GlobalFoundries’ higher possible upside, analysts clearly believe GlobalFoundries is more favorable than Coda Octopus Group.

Volatility and Risk

Coda Octopus Group has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares Coda Octopus Group and GlobalFoundries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coda Octopus Group	15.55%	7.36%	6.77%
GlobalFoundries	13.05%	6.86%	4.73%

Summary

Coda Octopus Group beats GlobalFoundries on 8 of the 14 factors compared between the two stocks.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.