Analyzing Omron (OTCMKTS:OMRNY) and AMETEK (NYSE:AME)

AMETEK (NYSE:AME) and Omron (OTCMKTS:OMRNY) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for AMETEK and Omron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMETEK	0	5	11	1	2.76
Omron	0	2	0	0	2.00

AMETEK currently has a consensus target price of $266.69, indicating a potential upside of 6.39%. Given AMETEK’s stronger consensus rating and higher possible upside, equities research analysts clearly believe AMETEK is more favorable than Omron.

Dividends

AMETEK pays an annual dividend of $1.36 per share and has a dividend yield of 0.5%. Omron pays an annual dividend of $0.47 per share and has a dividend yield of 1.2%. AMETEK pays out 19.9% of its earnings in the form of a dividend. Omron pays out 44.8% 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. AMETEK has increased its dividend for 6 consecutive years.

Earnings & Valuation

This table compares AMETEK and Omron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMETEK	$7.86 billion	7.31	$1.48 billion	$6.84	36.65
Omron	$5.10 billion	1.55	$188.01 million	$1.05	38.28

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

Institutional & Insider Ownership

87.4% of AMETEK shares are held by institutional investors. Comparatively, 1.1% of Omron shares are held by institutional investors. 0.5% of AMETEK shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AMETEK	20.04%	16.93%	11.26%
Omron	4.04%	3.68%	2.42%

Volatility and Risk

AMETEK has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Omron has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Summary

AMETEK beats Omron on 15 of the 18 factors compared between the two stocks.

About AMETEK

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets; power quality monitoring and c devices, uninterruptible power supplies, programmable power and electromagnetic compatibility test equipment, and sensors for gas turbines and dashboard instruments; heavy trucks, instrumentation, and controls for the food and beverage industries; and aircraft and engine sensors, power supplies, embedded computing, monitoring, fuel and fluid measurement, and data acquisition systems for aerospace and defense industry. Its EMG segment offers engineered medical components and devices, automation solutions, thermal management systems, specialty metals, and electrical interconnects; single-use and consumable surgical instruments, implantable components, and drug delivery systems; engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, and automation; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for thermal management, military and commercial aircraft, and military ground vehicles; motors for commercial appliances, food and beverage machines, hydraulic pumps, and industrial blowers; and operates a network of aviation maintenance, repair, and overhaul facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.

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.