Financial Review: Ralliant (NYSE:RAL) vs. Omron (OTCMKTS:OMRNY)

Omron (OTCMKTS:OMRNY) and Ralliant (NYSE:RAL) are both mid-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Volatility and Risk

Omron has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Ralliant has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

1.1% of Omron shares are held by institutional investors. 0.4% of Ralliant shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Omron and Ralliant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	0	2	0	0	2.00
Ralliant	1	4	7	0	2.50

Ralliant has a consensus price target of $77.20, suggesting a potential upside of 7.65%. Given Ralliant’s stronger consensus rating and higher possible upside, analysts clearly believe Ralliant is more favorable than Omron.

Profitability

This table compares Omron and Ralliant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omron	4.04%	3.68%	2.42%
Ralliant	-56.38%	14.97%	6.99%

Dividends

Omron pays an annual dividend of $0.47 per share and has a dividend yield of 1.2%. Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Omron pays out 44.8% of its earnings in the form of a dividend. Ralliant pays out -1.8% 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.

Earnings and Valuation

This table compares Omron and Ralliant”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.10 billion	1.53	$188.01 million	$1.05	37.82
Ralliant	$2.07 billion	3.84	-$1.22 billion	($10.85)	-6.61

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

Summary

Ralliant beats Omron on 9 of the 16 factors compared between the two stocks.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.

About Ralliant

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.