Critical Review: iRobot Corporation (IRBT) versus Adept Technology (ADEP)

Adept Technology (NASDAQ: ADEP) and iRobot Corporation (NASDAQ:IRBT) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

86.0% of iRobot Corporation shares are owned by institutional investors. 4.5% of iRobot Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Adept Technology and iRobot Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adept Technology -10.16% -27.44% -18.42%
iRobot Corporation 7.84% 14.05% 11.01%

Earnings & Valuation

This table compares Adept Technology and iRobot Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Adept Technology N/A N/A N/A N/A N/A
iRobot Corporation $732.72 million 3.84 $87.19 million $2.04 50.11

iRobot Corporation has higher revenue and earnings than Adept Technology.

Analyst Ratings

This is a summary of current ratings for Adept Technology and iRobot Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adept Technology 0 0 0 0 N/A
iRobot Corporation 1 5 1 0 2.00

iRobot Corporation has a consensus price target of $66.86, indicating a potential downside of 34.60%. Given iRobot Corporation’s higher possible upside, analysts clearly believe iRobot Corporation is more favorable than Adept Technology.

Summary

iRobot Corporation beats Adept Technology on 8 of the 8 factors compared between the two stocks.

About Adept Technology

Adept Technology, Inc. (Adept) is a global, robotics-based automation supplier. The Company designs and manufactures industrial (fixed) and mobile robots along with a range of control and vision systems and software which are used for assembly, packaging, handling, testing and logistics applications. Adept operates through two segments: Robotics, and Services and Support. The Company provides robotics systems, software and services to a variety of markets, including electronics, food, semiconductor, warehouse/logistics, medical and automotive. Adept also offers on-site field service, training courses, applications support, field upgrades, factory repair and remanufactured products. Adept classifies robots into two categories, fixed (industrial) robots (multi-axis) and mobile robots (autonomous vehicles). Adept manufactures both types of robots and offers various options, such as vision and automation control software and related hardware, parts feeding and enterprise-level software.

About iRobot Corporation

iRobot Corporation is a consumer robot company, which is engaged in designing and building robots. The Company’s portfolio of solutions features various technologies for the connected home and various concepts in mapping, navigation, mobility and artificial intelligence. The Company sells various products that are designed for use at home. Its consumer products focus on both indoor and outdoor cleaning applications. The Company offers multiple Roomba floor vacuuming robots. Roomba’s design allows it to clean under kick boards, beds and other furniture. It offers the Braava family of automatic floor mopping robots designed for hard surface floors. The Roomba 600 series robots offer a three-stage cleaning system. The iRobot HOME Application helps users to choose cleaning options for their home. Its Mirra Pool Cleaning Robot is used to clean residential pools. The Company’s trademarks include Scooba, ViPR, NorthStar, Create, iAdapt, Aware, Home Base, Looj, Braava, vSLAM and Virtual Wall.

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