Comparing Orbotech (ORBK) and Kyocera Corporation (KYO)

Orbotech (NASDAQ: ORBK) and Kyocera Corporation (NYSE:KYO) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

Orbotech has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Kyocera Corporation has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares Orbotech and Kyocera Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Orbotech $818.31 million 2.40 $158.40 million $1.86 22.04
Kyocera Corporation $13.24 billion 1.72 $1.86 billion $3.04 19.84

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

Profitability

This table compares Orbotech and Kyocera Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orbotech 11.03% 14.98% 10.33%
Kyocera Corporation 8.34% 4.96% 3.87%

Analyst Recommendations

This is a breakdown of recent ratings for Orbotech and Kyocera Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orbotech 0 1 6 0 2.86
Kyocera Corporation 0 0 1 0 3.00

Orbotech presently has a consensus target price of $39.86, indicating a potential downside of 2.79%. Given Orbotech’s higher possible upside, research analysts plainly believe Orbotech is more favorable than Kyocera Corporation.

Dividends

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

Insider and Institutional Ownership

69.9% of Orbotech shares are held by institutional investors. Comparatively, 0.5% of Kyocera Corporation shares are held by institutional investors. 10.4% of Orbotech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Orbotech beats Kyocera Corporation on 11 of the 16 factors compared between the two stocks.

Orbotech Company Profile

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.

Kyocera Corporation 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.

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