Comparing Fabrinet (NYSE:FN) and Microwave Filter (OTCMKTS:MFCO)

Microwave Filter (OTCMKTS:MFCO) and Fabrinet (NYSE:FN) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Microwave Filter and Fabrinet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microwave Filter	0	0	0	0	0.00
Fabrinet	0	2	6	1	2.89

Fabrinet has a consensus target price of $541.25, suggesting a potential upside of 7.10%. Given Fabrinet’s stronger consensus rating and higher probable upside, analysts clearly believe Fabrinet is more favorable than Microwave Filter.

Earnings and Valuation

This table compares Microwave Filter and Fabrinet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microwave Filter	$2.18 million	0.85	-$260,000.00	N/A	N/A
Fabrinet	$3.89 billion	4.65	$332.53 million	$10.44	48.41

Fabrinet has higher revenue and earnings than Microwave Filter.

Insider & Institutional Ownership

97.4% of Fabrinet shares are owned by institutional investors. 6.9% of Microwave Filter shares are owned by insiders. Comparatively, 0.2% of Fabrinet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Microwave Filter and Fabrinet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microwave Filter	N/A	N/A	N/A
Fabrinet	9.69%	18.69%	12.96%

Risk & Volatility

Microwave Filter has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

Fabrinet beats Microwave Filter on 12 of the 13 factors compared between the two stocks.

About Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in Grand Cayman, the Cayman Islands.