Vontier (NYSE:VNT – Get Free Report) and Ouster (NASDAQ:OUST – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Analyst Ratings
This is a summary of current ratings for Vontier and Ouster, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vontier | 1 | 3 | 4 | 0 | 2.38 |
| Ouster | 1 | 0 | 6 | 0 | 2.71 |
Vontier currently has a consensus price target of $42.86, indicating a potential downside of 2.33%. Ouster has a consensus price target of $58.00, indicating a potential upside of 45.74%. Given Ouster’s stronger consensus rating and higher probable upside, analysts plainly believe Ouster is more favorable than Vontier.
Profitability
This table compares Vontier and Ouster’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vontier | 11.27% | 39.53% | 11.74% |
| Ouster | -20.36% | -11.70% | -9.25% |
Valuation and Earnings
This table compares Vontier and Ouster”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vontier | $3.08 billion | 1.89 | $406.10 million | $2.44 | 17.98 |
| Ouster | $169.38 million | 16.94 | -$60.38 million | ($0.69) | -57.68 |
Vontier has higher revenue and earnings than Ouster. Ouster is trading at a lower price-to-earnings ratio than Vontier, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Vontier has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Ouster has a beta of 3.47, suggesting that its stock price is 247% more volatile than the S&P 500.
Institutional & Insider Ownership
95.8% of Vontier shares are owned by institutional investors. Comparatively, 31.5% of Ouster shares are owned by institutional investors. 1.1% of Vontier shares are owned by insiders. Comparatively, 5.7% of Ouster shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Vontier beats Ouster on 8 of the 14 factors compared between the two stocks.
About Vontier
Vontier Corporation (NYSE: VNT) is a global technology company serving the mobility, convenience retail and commercial transportation industries. Its products and services help businesses manage fueling and energy infrastructure, vehicle maintenance, payments and fleet operations. The company’s offerings include fuel dispensers and payment systems, fuel-management and tank-monitoring technology, fleet telematics, vehicle diagnostic equipment and tools, and software for electric-vehicle charging.
About Ouster
Ouster, Inc. develops lidar sensors and software that help machines and infrastructure detect and interpret their surroundings. Its digital lidar products use laser-based sensing to create 3D representations of nearby objects and environments. The company serves customers in areas including industrial automation, robotics, smart infrastructure and automotive applications. Its offerings include lidar sensors and perception software designed to support tasks such as object detection, mapping and navigation.
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