Head-To-Head Contrast: Cemtrex (NASDAQ:CETX) versus AUO (OTCMKTS:AUOTY)

Cemtrex (NASDAQ:CETX) and AUO (OTCMKTS:AUOTY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Cemtrex and AUO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemtrex	1	0	0	0	1.00
AUO	0	0	0	0	0.00

Profitability

This table compares Cemtrex and AUO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemtrex	-39.63%	-142.99%	-48.35%
AUO	2.06%	3.58%	1.48%

Earnings and Valuation

This table compares Cemtrex and AUO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cemtrex	$76.49 million	0.04	-$28.11 million	($344.87)	-0.01
AUO	$9.04 billion	0.79	$219.80 million	$0.24	38.88

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

Institutional and Insider Ownership

2.0% of Cemtrex shares are owned by institutional investors. 16.0% of AUO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Cemtrex has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Summary

AUO beats Cemtrex on 9 of the 12 factors compared between the two stocks.

About Cemtrex

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.