Contrasting SMC (OTCMKTS:SMCAY) and Teledyne Technologies (NYSE:TDY)

Teledyne Technologies (NYSE:TDY) and SMC (OTCMKTS:SMCAY) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares Teledyne Technologies and SMC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$6.12 billion	4.95	$894.80 million	$21.88	30.04
SMC	$5.60 billion	4.53	$1.10 billion	$1.03	19.29

SMC has lower revenue, but higher earnings than Teledyne Technologies. SMC is trading at a lower price-to-earnings ratio than Teledyne Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Teledyne Technologies has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, SMC has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

91.6% of Teledyne Technologies shares are held by institutional investors. Comparatively, 1.0% of SMC shares are held by institutional investors. 1.4% of Teledyne Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Teledyne Technologies and SMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teledyne Technologies	15.75%	10.89%	7.65%
SMC	21.94%	9.40%	8.53%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Teledyne Technologies and SMC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	4	3	1	2.62
SMC	0	2	1	0	2.33

Teledyne Technologies presently has a consensus price target of $730.17, indicating a potential upside of 11.10%. Given Teledyne Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Teledyne Technologies is more favorable than SMC.

Summary

Teledyne Technologies beats SMC on 11 of the 15 factors compared between the two stocks.

About Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

About SMC

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.