Snap-On (NYSE: SNA) and Newport Corp (NASDAQ:NEWP) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Insider and Institutional Ownership
93.1% of Snap-On shares are held by institutional investors. 3.7% of Snap-On shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Snap-On and Newport Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Snap-On pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Newport Corp does not pay a dividend. Snap-On pays out 29.3% of its earnings in the form of a dividend. Newport Corp has increased its dividend for 7 consecutive years.
This is a summary of current ratings for Snap-On and Newport Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Snap-On currently has a consensus target price of $197.00, suggesting a potential upside of 31.11%. Given Snap-On’s higher possible upside, equities analysts plainly believe Snap-On is more favorable than Newport Corp.
Valuation & Earnings
This table compares Snap-On and Newport Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Snap-On||$3.83 billion||2.26||$971.00 million||$9.68||15.52|
Snap-On has higher revenue and earnings than Newport Corp.
Snap-On beats Newport Corp on 9 of the 11 factors compared between the two stocks.
Snap-On Company Profile
Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.
Newport Corp Company Profile
Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.
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