Head to Head Analysis: Fanuc (OTCMKTS:FANUY) & iRobot (NASDAQ:IRBT)

Fanuc (OTCMKTS:FANUY) and iRobot (NASDAQ:IRBT) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

1.5% of Fanuc shares are held by institutional investors. Comparatively, 77.4% of iRobot shares are held by institutional investors. 0.6% of iRobot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Fanuc and iRobot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fanuc	18.55%	8.57%	7.66%
iRobot	-38.11%	-222.50%	-35.83%

Analyst Recommendations

This is a breakdown of recent ratings for Fanuc and iRobot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fanuc	0	0	0	1	4.00
iRobot	0	1	0	0	2.00

Risk and Volatility

Fanuc has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, iRobot has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares Fanuc and iRobot”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fanuc	$5.23 billion	4.78	$973.88 million	$0.53	24.04
iRobot	$681.85 million	0.14	-$145.52 million	($7.98)	-0.39

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

Summary

Fanuc beats iRobot on 10 of the 13 factors compared between the two stocks.

About Fanuc

FANUC Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive system, an open platform for the manufacturing industry. FANUC Corporation was incorporated in 1950 and is headquartered in Yamanashi, Japan.

About iRobot

iRobot Corporation designs, builds, and sells robots and home innovation products in the United States, Europe, the Middle East, Africa, Japan, and internationally. The company offers floor care products, including Roomba floor vacuuming robots; Roomba accessories and consumables, such as the Clean Base Automatic Dirt Disposal, replacement dirt disposal bags for the Clean Base, filters, brushes, and batteries; Braava family of automatic floor mopping robots; and Braava accessories and consumables, which include cleaning solution, washable and disposable mopping pads, replacement tanks, and batteries, as well as subscription services. It also provides Root robots for coding, discovery, and play; Roomba Combo mopping and vacuuming robot; and accessories, including robot vacuum and mop, handheld vacuum, and air purifier, educational coding robot, and accessory bundles. The company sells its products through chain stores and other national retailers, value- added distributors, and resellers, as well as through its website and app, and e-commerce websites. iRobot Corporation was incorporated in 1990 and is headquartered in Bedford, Massachusetts.