FEI (NASDAQ: FEIC) and Canon (NYSE:CAJ) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitabiliy and analyst recommendations.

Dividends

FEI pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Canon pays an annual dividend of $1.18 per share and has a dividend yield of 3.5%. FEI pays out 46.5% of its earnings in the form of a dividend. Canon pays out 83.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares FEI and Canon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FEI N/A N/A N/A $2.58 41.43
Canon $31.93 billion 1.15 $4.61 billion $1.41 23.85

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

Risk and Volatility

FEI has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Canon has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for FEI and Canon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FEI 0 0 0 0 N/A
Canon 1 0 2 0 2.33

Profitability

This table compares FEI and Canon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FEI 9.62% 9.62% 6.97%
Canon 4.95% 6.11% 3.68%

Institutional and Insider Ownership

97.7% of FEI shares are owned by institutional investors. Comparatively, 1.5% of Canon shares are owned by institutional investors. 1.0% of FEI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

FEI beats Canon on 8 of the 11 factors compared between the two stocks.

FEI Company Profile

FEI Company is a supplier of scientific instruments and related services for nanoscale applications and solutions for industry and science. The Company operates through two segments: Industry Group, which consists of customers in semiconductor integrated circuit manufacturing and related industries, such as manufacturers of data storage equipment and other technologies, as well as customers in the oil and gas industry, and Science Group, which includes universities, research laboratories and customers in a range of industries, including metals, automobiles, aerospace, geosciences and forensics. It designs, manufactures and supports the range of microscopy workflows. Its products include transmission electron microscopes (TEMs), which offer an integrated and automated operation; scanning electron microscopes (SEMs), which are used for inspecting topographies of materials; DualBeam systems, which provide solution for three-dimensional microscopy and analysis, and focused ion beam (FIB).

Canon Company Profile

Canon Inc. (Canon) is a manufacturer of office multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. Canon sells its products principally under the Canon brand name and through sales subsidiaries. Each of these subsidiaries is responsible for marketing and distribution to retail dealers in an assigned territory. Canon operates its business in three segments: the Office Business Unit, the Imaging System Business Unit, and the Industry and Others Business Unit. Canon’s research and development activities range from basic research to product-oriented research directed at maintaining Canon’s technological operations in the marketplace. Canon has manufacturing subsidiaries in a range of countries, including the United States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand, Vietnam and the Philippines.

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