General Cable (NYSE: BGC) and FARO Technologies (NASDAQ:FARO) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
98.4% of General Cable shares are held by institutional investors. Comparatively, 97.6% of FARO Technologies shares are held by institutional investors. 1.8% of General Cable shares are held by insiders. Comparatively, 2.4% of FARO Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares General Cable and FARO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares General Cable and FARO Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Cable||$3.86 billion||0.39||-$93.80 million||($3.56)||-8.40|
|FARO Technologies||$325.58 million||2.63||$11.10 million||$0.00||-5,120,000.00|
FARO Technologies has lower revenue, but higher earnings than General Cable. FARO Technologies is trading at a lower price-to-earnings ratio than General Cable, indicating that it is currently the more affordable of the two stocks.
General Cable pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. FARO Technologies does not pay a dividend. General Cable pays out -20.2% of its earnings in the form of a dividend.
Risk and Volatility
General Cable has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for General Cable and FARO Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FARO Technologies has a consensus price target of $49.80, suggesting a potential downside of 2.73%. Given FARO Technologies’ higher probable upside, analysts clearly believe FARO Technologies is more favorable than General Cable.
About General Cable
General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.
About FARO Technologies
FARO Technologies, Inc. designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. The Company operates in three segments: Factory Metrology, Construction BIM-CIM and Other. It sells its products through a direct sales force across customers in a range of manufacturing, industrial, architecture, surveying, building construction and law enforcement applications. Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for Computer-Aided Design-based inspection and/or factory-level statistical process control and surveying. It operates in international markets throughout the world and maintain sales offices in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the United Kingdom, the United States and Vietnam.
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