Analyzing Hurco Companies (NASDAQ:HURC) and Fanuc (OTCMKTS:FANUY)

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

Profitability

This table compares Fanuc and Hurco Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fanuc	20.11%	9.60%	8.65%
Hurco Companies	-3.58%	-3.37%	-2.51%

Insider & Institutional Ownership

1.5% of Fanuc shares are owned by institutional investors. Comparatively, 74.4% of Hurco Companies shares are owned by institutional investors. 9.9% of Hurco Companies shares are owned 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.

Volatility and Risk

Fanuc has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Hurco Companies has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Valuation & Earnings

This table compares Fanuc and Hurco Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fanuc	$5.70 billion	6.69	$1.10 billion	$0.62	31.31
Hurco Companies	$178.55 million	0.76	-$15.12 million	($1.03)	-20.40

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fanuc and Hurco Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fanuc	0	2	0	1	2.67
Hurco Companies	1	0	0	0	1.00

Summary

Fanuc beats Hurco Companies on 11 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 Hurco Companies

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide. Its principal products include general-purpose computerized machine tools, including vertical and horizontal machining centers, turning centers, and toolroom machines. The company also provides computer control systems and related software for press brake applications. In addition, it offers machine tool components, automation integration equipment, and solutions for job shops; and software options, control upgrades, and accessories and replacement parts for its products, as well as customer service, training, and applications support services. Further, the company provides Autobend computer control systems for press brake machines. It serves independent job shops and specialized short-run production applications within large manufacturing operations, as well as precision tool, die, and mold manufacturers in aerospace, defense, medical equipment, energy, automotive/transportation, electronics, and computer industries. The company sells its products under the Hurco, Milltronics, and Takumi brands through independent agents and distributors, as well as through its direct sales and service organizations. Hurco Companies, Inc. was incorporated in 1968 and is headquartered in Indianapolis, Indiana.