Fabrinet (NYSE: FN) and CUI Global (NASDAQ:CUI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Valuation and Earnings
This table compares Fabrinet and CUI Global’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fabrinet||$1.33 billion||1.12||$121.84 million||$2.38||16.84|
|CUI Global||$83.00 million||0.91||-$6.25 million||($0.39)||-9.26|
This table compares Fabrinet and CUI Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Fabrinet has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, CUI Global has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Institutional & Insider Ownership
95.1% of Fabrinet shares are owned by institutional investors. Comparatively, 65.5% of CUI Global shares are owned by institutional investors. 4.3% of Fabrinet shares are owned by insiders. Comparatively, 4.7% of CUI Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Fabrinet and CUI Global, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fabrinet currently has a consensus price target of $53.55, indicating a potential upside of 33.61%. CUI Global has a consensus price target of $9.00, indicating a potential upside of 149.31%. Given CUI Global’s higher probable upside, analysts plainly believe CUI Global is more favorable than Fabrinet.
Fabrinet beats CUI Global on 12 of the 14 factors compared between the two stocks.
Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company’s customer base includes companies in industries that require precision manufacturing capabilities, such as optical communications, industrial lasers, automotive, medical and sensors. Its customers in these industries support end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.
About CUI Global
CUI Global, Inc. is a platform company. The Company’s segments include Power and Electromechanical, Energy and Other. The Power and Electromechanical segment includes its subsidiaries, CUI, Inc. (CUI), CUI Japan and CUI-Canada, Inc., which provide electromechanical components, including power supplies, transformers, converters, connectors and industrial controls for original equipment manufacturers (OEMs). Its Power and Electro-Mechanical segment aggregates its product offerings into over two categories: components, including connectors, speakers, buzzers, test and measurement devices, and control solutions, including encoders and sensors, and power solutions. Its Energy segment includes its subsidiaries, Orbital Gas Systems Limited (Orbital) and the Orbital Gas Systems, North America, Inc., which consist of gas related test and measurement systems, including the GasPT, a natural gas inferential metering device. The Other segment includes corporate activity.
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