Orbotech (ORBK) versus Schmitt Industries (NASDAQ:SMIT) Critical Review


Schmitt Industries (NASDAQ:SMIT) and Orbotech (NASDAQ:ORBK) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Valuation and Earnings

This table compares Schmitt Industries and Orbotech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schmitt Industries $13.89 million 0.65 $210,000.00 N/A N/A
Orbotech $900.86 million 3.55 $132.38 million $2.74 24.00

Orbotech has higher revenue and earnings than Schmitt Industries.

Institutional & Insider Ownership

27.5% of Schmitt Industries shares are owned by institutional investors. Comparatively, 68.8% of Orbotech shares are owned by institutional investors. 13.0% of Schmitt Industries shares are owned by insiders. Comparatively, 10.4% of Orbotech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Schmitt Industries and Orbotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schmitt Industries -5.18% -0.17% -0.15%
Orbotech 14.62% 16.36% 11.74%

Analyst Ratings

This is a breakdown of current ratings and target prices for Schmitt Industries and Orbotech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schmitt Industries N/A
Orbotech N/A

Risk and Volatility

Schmitt Industries has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Orbotech has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Summary

Orbotech beats Schmitt Industries on 8 of the 10 factors compared between the two stocks.

About Schmitt Industries

Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide. The company’s Balancer segment offers computer-controlled vibration detection, balancing, and process control systems. Its products comprise Schmitt Dynamic Balance System, which consists of a vibration sensor, a computer control unit, and a balance head; SB-5500, an optional acoustic emission monitoring system (AEMS) control card to monitor the AE signals generated on the grinding machine; process control cards to provide enhanced control of the grinding process; SB-2000, a compact manual balancing system; and AE-1000, an AE control platform, which reduces air machine grinding time. This segment sells its products to end user operators, as well as manufacturers of grinding machines for automotive, industrial, aerospace, and medical industries through independent manufacturers’ representatives and distributors. Its Measurement segment provides laser and white light sensors for distance, dimensional, and area measurement for various commercial applications; and ultrasonic measurement products that measure the levels of liquid tanks and transmit that data through satellite to a secure Website for display. This segment’s products include distance measurement, laser displacement, and chromatic confocal sensors, as well as laser line scanners; and remote tank monitoring products. The company offers its products under the SBS, Acuity, Xact, SMS, Lasercheck, and AccuProfile trademarks. Schmitt Industries, Inc. was founded in 1984 and is headquartered in Portland, Oregon.

About Orbotech

Orbotech Ltd. provides yield-enhancing and process-enabling solutions for the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), semiconductor devices (SDs), and other electronic components in China, Taiwan, North America, Europe, Japan, Korea, and internationally. It operates through three segments: Production Solutions for the Electronics Industry, Solar Energy, and Recognition Software. The company designs, develops, manufactures, markets, and services direct imaging, automated optical inspection (AOI), automated optical shaping, via formation laser drilling tools, additive printing solutions, and other production systems used in the manufacture of PCBs; AOI, test, repair, and process monitoring systems for use in the manufacture of FPDs; and etch, physical vapor deposition, chemical vapor deposition, and molecular vapor deposition equipment used in the manufacture of SDs, such as micro-electro-mechanical systems, advanced semiconductor packaging, power and radio frequency devices, and high brightness light emitting diode devices. It is also involved in the research, development, and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels. In addition, the company develops and markets check processing and healthcare payments automation solutions to banks, financial, and other payment processing institutions and healthcare providers through system integrators and solution providers. The company was formerly known as Optrotech Ltd. and changed its name to Orbotech Ltd. as a result of its merger with Orbot Systems Ltd. in October 1992. Orbotech Ltd. was founded in 1981 and is headquartered in Yavne, Israel.



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