Hurco Companies (NASDAQ: HURC) and Orbotech (NASDAQ:ORBK) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Hurco Companies 6.52% 10.01% 7.18%
Orbotech 14.69% 15.98% 11.22%

Earnings & Valuation

This table compares Hurco Companies and Orbotech’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hurco Companies $243.67 million 1.29 $15.11 million N/A N/A
Orbotech $900.86 million 3.27 $132.38 million $2.74 22.20

Orbotech has higher revenue and earnings than Hurco Companies.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hurco Companies and Orbotech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hurco Companies 0 0 0 0 N/A
Orbotech 0 5 4 0 2.44

Orbotech has a consensus target price of $54.25, indicating a potential downside of 10.83%. Given Orbotech’s higher possible upside, analysts plainly believe Orbotech is more favorable than Hurco Companies.

Institutional and Insider Ownership

79.4% of Hurco Companies shares are owned by institutional investors. Comparatively, 74.7% of Orbotech shares are owned by institutional investors. 7.9% of Hurco Companies shares are owned by insiders. Comparatively, 10.4% of Orbotech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Hurco Companies has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Orbotech has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Dividends

Hurco Companies pays an annual dividend of $0.44 per share and has a dividend yield of 0.9%. Orbotech does not pay a dividend.

Summary

Orbotech beats Hurco Companies on 11 of the 13 factors compared between the two stocks.

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. The company offers general purpose computerized machine tools, such as vertical machining centers and turning centers. It also provides computer numerical control (CNC) machine tools, knee mills, vertical machining centers, tool room bed mills, combination lathes, horizontal machining centers, slant-bed lathes, and bridge mills; and double column vertical machining centers, and high-speed drill and tap machines. In addition, the company offers Autobend, a computer control system for metal bending press brake machines; software option products for part programming; and LCM machine tool components and accessories, including CNC rotary and tilt tables, and swivel heads and electro-spindles. Further, it provides installation, warranty, operator training, and customer support services; and sells software options, computer control upgrades, accessories, and replacement parts for its products. The company serves precision tool, die, and mold manufacturers; independent job shops; and specialized short-run production applications, as well as original equipment manufacturers of new metal fabrication machine tools. It sells its products through independent agents and distributors; and direct sales and service organizations under the Hurco, Milltronics, and Takumi brands. Hurco Companies, Inc. was founded in 1968 and is headquartered in Indianapolis, Indiana.

About Orbotech

Orbotech Ltd. provides yield-enhancing and process-enabling solutions for the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), semiconductor devices (SDs), and other electronic components in China, Taiwan, North America, Europe, Japan, Korea, and internationally. It operates through three segments: Production Solutions for the Electronics Industry, Solar Energy, and Recognition Software. The company designs, develops, manufactures, markets, and services direct imaging, automated optical inspection (AOI), automated optical shaping, via formation laser drilling tools, additive printing solutions, and other production systems used in the manufacture of PCBs; AOI, test, repair, and process monitoring systems for use in the manufacture of FPDs; and etch, physical vapor deposition, chemical vapor deposition, and molecular vapor deposition equipment used in the manufacture of SDs, such as micro-electro-mechanical systems, advanced semiconductor packaging, power and radio frequency devices, and high brightness light emitting diode devices. It is also involved in the research, development, and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels. In addition, the company develops and markets check processing and healthcare payments automation solutions to banks, financial, and other payment processing institutions and healthcare providers through system integrators and solution providers. The company was formerly known as Optrotech Ltd. and changed its name to Orbotech Ltd. as a result of its merger with Orbot Systems Ltd. in October 1992. Orbotech Ltd. was founded in 1981 and is headquartered in Yavne, Israel.

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