Reviewing Vontier (NYSE:VNT) and NAPCO Security Technologies (NASDAQ:NSSC)

Vontier (NYSE:VNT) and NAPCO Security Technologies (NASDAQ:NSSC) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Vontier and NAPCO Security Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vontier	1	3	4	0	2.38
NAPCO Security Technologies	0	2	6	0	2.75

Vontier currently has a consensus price target of $41.00, suggesting a potential upside of 32.16%. NAPCO Security Technologies has a consensus price target of $50.40, suggesting a potential upside of 43.75%. Given NAPCO Security Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe NAPCO Security Technologies is more favorable than Vontier.

Valuation & Earnings

This table compares Vontier and NAPCO Security Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vontier	$3.08 billion	1.36	$406.10 million	$2.41	12.87
NAPCO Security Technologies	$202.32 million	6.20	$43.03 million	$1.21	28.98

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

Volatility and Risk

Vontier has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, NAPCO Security Technologies has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Vontier and NAPCO Security Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vontier	11.34%	38.57%	11.30%
NAPCO Security Technologies	21.27%	31.41%	26.06%

Insider and Institutional Ownership

95.8% of Vontier shares are owned by institutional investors. Comparatively, 85.1% of NAPCO Security Technologies shares are owned by institutional investors. 1.1% of Vontier shares are owned by company insiders. Comparatively, 5.7% of NAPCO Security Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. NAPCO Security Technologies pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. Vontier pays out 4.1% of its earnings in the form of a dividend. NAPCO Security Technologies pays out 56.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NAPCO Security Technologies has raised its dividend for 2 consecutive years. NAPCO Security Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NAPCO Security Technologies beats Vontier on 11 of the 17 factors compared between the two stocks.

About Vontier

Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.