Topcon (OTCMKTS: TOPCF) and KLA-Tencor (NASDAQ:KLAC) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Earnings and Valuation
This table compares Topcon and KLA-Tencor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Topcon||$1.19 billion||1.81||$41.07 million||$0.38||52.37|
|KLA-Tencor||$3.48 billion||4.66||$926.07 million||$5.94||17.52|
This table compares Topcon and KLA-Tencor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
KLA-Tencor pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Topcon does not pay a dividend. KLA-Tencor pays out 39.7% of its earnings in the form of a dividend.
This is a summary of recent ratings for Topcon and KLA-Tencor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KLA-Tencor has a consensus target price of $122.08, suggesting a potential upside of 17.30%. Given KLA-Tencor’s higher probable upside, analysts plainly believe KLA-Tencor is more favorable than Topcon.
Volatility and Risk
Topcon has a beta of 3.12, meaning that its stock price is 212% more volatile than the S&P 500. Comparatively, KLA-Tencor has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Institutional & Insider Ownership
91.7% of KLA-Tencor shares are owned by institutional investors. 0.2% of KLA-Tencor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
KLA-Tencor beats Topcon on 12 of the 15 factors compared between the two stocks.
Topcon Corporation, together with its subsidiaries, develops, manufactures, and sells positioning, eye care, and smart infrastructure products worldwide. Its positioning products include GNSS receivers, GIS, GPS plus reference station systems, machine control systems, precision agriculture systems, and asset management systems. The company?s infrastructure products consists of total stations, layout navigators, mobile mapping systems, 3D laser scanners, field controllers, levels, theodolites, rotating lasers, and pipe lasers. Its eye care products comprise 3D optical coherence tomography systems, retinal cameras, photocoagulators, tonometers, slit lamps, operation and specular microscopes, ophthalmic data system IMAGEnet, vision testers, auto refractometers, auto kerato-refractometers, lens meters, and chart projectors. The company was formerly known as Tokyo Optical Co., Ltd. and changed its name to Topcon Corporation in 1989. Topcon Corporation was founded in 1932 and is headquartered in Tokyo, Japan.
KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nano-electronics industries worldwide. It offers chip manufacturing products, such as front-end defect inspection tools, defect review systems, advanced packaging process control systems, metrology solutions, in-situ process monitoring products, and lithography software; wafer manufacturing products comprising wafer manufacturing products comprising surface and defect inspection, wafer geometry and nanotopography metrology, and data management; and reticle manufacturing products, such as defect inspection and pattern placement metrology products. The company also provides light emitting diode (LED), power device, and compound semiconductor manufacturing products consisting of patterned wafer inspection, defect inspection, surface metrology, and data management products; thin-film head metrology and inspection, virtual lithography, in-situ process monitoring, transparent and metal substrate inspection, and data management products for data storage media/head manufacturing; and stylus and optical profiling, and optical inspection products for microelectromechanical systems manufacturing, as well as products for general purpose/lab applications. It offers its products and services for bare wafer, IC, lithography reticle, and disk manufacturers. KLA-Tencor Corporation was founded in 1975 and is headquartered in Milpitas, California.
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