Zebra Technologies Corporation (NASDAQ: ZBRA) and Teledyne Technologies (NYSE:TDY) are both mid-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

90.0% of Zebra Technologies Corporation shares are owned by institutional investors. Comparatively, 83.2% of Teledyne Technologies shares are owned by institutional investors. 2.5% of Zebra Technologies Corporation shares are owned by insiders. Comparatively, 3.3% of Teledyne Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Zebra Technologies Corporation and Teledyne Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zebra Technologies Corporation $3.61 billion 1.53 $613.00 million ($0.79) -131.87
Teledyne Technologies $2.32 billion 2.29 $420.20 million $5.44 27.67

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

Profitability

This table compares Zebra Technologies Corporation and Teledyne Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zebra Technologies Corporation -1.14% 38.88% 6.68%
Teledyne Technologies 8.44% 13.80% 6.82%

Analyst Recommendations

This is a summary of recent ratings and target prices for Zebra Technologies Corporation and Teledyne Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zebra Technologies Corporation 0 4 4 0 2.50
Teledyne Technologies 0 1 1 0 2.50

Zebra Technologies Corporation presently has a consensus price target of $101.17, indicating a potential downside of 2.89%. Teledyne Technologies has a consensus price target of $153.50, indicating a potential upside of 1.96%. Given Teledyne Technologies’ higher probable upside, analysts plainly believe Teledyne Technologies is more favorable than Zebra Technologies Corporation.

Risk and Volatility

Zebra Technologies Corporation has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Zebra Technologies Corporation Company Profile

Zebra Technologies Corporation designs, manufactures and sells a range of automatic identification and data capture (AIDC) products. The Company’s AIDC products include mobile computers, barcode scanners, radio frequency identification (RFID) readers, wireless local area network (WLAN) products, specialty printers for barcode labeling and personal identification, real-time location systems (RTLS), related accessories and supplies, such as self-adhesive labels and other consumables, and utilities and application software. The Company operates through two segments: Enterprise, which comprises its mobile computing, data capture, RFID and WLAN products, and services, and Legacy Zebra, which comprises barcode and card printing, location solutions, supplies and services. The Company’s products are used in automatic identification (auto ID), data collection and personal identification applications.

Teledyne Technologies Company Profile

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets. The Company’s segments include Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, as well as electronic test and measurement equipment. Digital Imaging segment includes sensors, cameras and systems, within the visible, infrared, ultraviolet and X-ray spectra. Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics. Engineered Systems segment provides systems engineering and integration and technology development, as well as manufacturing solutions.

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