FARO Technologies (NASDAQ: FARO) and NL Industries (NYSE:NL) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
This is a summary of current ratings and price targets for FARO Technologies and NL Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares FARO Technologies and NL Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FARO Technologies||$360.92 million||2.90||-$14.51 million||($2.02)||-30.84|
|NL Industries||$108.90 million||3.76||$15.32 million||$1.58||5.32|
NL Industries has lower revenue, but higher earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than NL Industries, indicating that it is currently the more affordable of the two stocks.
This table compares FARO Technologies and NL Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
FARO Technologies has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, NL Industries has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500.
Institutional and Insider Ownership
93.8% of FARO Technologies shares are held by institutional investors. Comparatively, 10.5% of NL Industries shares are held by institutional investors. 2.4% of FARO Technologies shares are held by insiders. Comparatively, 0.1% of NL Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
NL Industries beats FARO Technologies on 9 of the 14 factors compared between the two stocks.
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.
NL Industries Company Profile
NL Industries, Inc. is a holding company. The Company operates in the component products industry through its subsidiary, CompX International Inc. (CompX). The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. (Kronos). The Company, through Compx, manufactures engineered components that are sold to a range of industries, including recreational transportation (including boats), postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. Kronos is a global producer and marketer of value-added titanium dioxide pigments (TiO2), a base industrial product used in imparting whiteness, brightness and opacity to a range of customer applications and end use markets, including coatings, plastics, paper, inks, food, cosmetics, and other industrial and consumer products. Kronos has production facilities in Europe and North America.
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