Perceptron (PRCP) & EXFO (EXFO) Head-To-Head Review

Perceptron (NASDAQ: PRCP) and EXFO (NASDAQ:EXFO) are both small-cap testing & measuring equipment companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Perceptron has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, EXFO has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Perceptron and EXFO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perceptron 4.70% 9.57% 5.60%
EXFO 0.35% 5.26% 3.99%

Earnings & Valuation

This table compares Perceptron and EXFO’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Perceptron $77.95 million 1.21 -$160,000.00 $0.40 24.88
EXFO $243.30 million 0.94 $850,000.00 $0.02 210.11

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

Analyst Ratings

This is a breakdown of recent recommendations for Perceptron and EXFO, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perceptron 0 0 1 0 3.00
EXFO 0 4 1 0 2.20

Perceptron currently has a consensus target price of $9.00, indicating a potential downside of 9.55%. EXFO has a consensus target price of $5.35, indicating a potential upside of 27.38%. Given EXFO’s higher possible upside, analysts plainly believe EXFO is more favorable than Perceptron.

Institutional and Insider Ownership

62.8% of Perceptron shares are owned by institutional investors. Comparatively, 17.0% of EXFO shares are owned by institutional investors. 12.0% of Perceptron shares are owned by insiders. Comparatively, 20.0% of EXFO shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Perceptron beats EXFO on 8 of the 13 factors compared between the two stocks.

About Perceptron

Perceptron, Inc. develops, produces and sells a range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and three-dimensional (3D) scanning. The Company’s products include 3D machine vision solutions, robot guidance, coordinate measuring machines (CMMs), laser scanning and advanced analysis software. The Company’s products are categorized as In-Line, Near-Line and Off-Line Measurement Solutions (Measurement Solutions); 3D Scanning Solutions, and Value Added Services. Its In-Line and Near-Line measurement solutions include AutoGauge, AutoFit, AutoScan, AutoGuide and Helix. Its Off-Line measurement solutions include Coord3 and TouchDMIS. Its 3D Scanning Solutions include ScanWorks, ScanR and WheelWorks. Its Value Added Services include training, field service, calibration, launch support services, maintenance agreements and repairs. The Company operates in the Americas, Europe and Asia.

About EXFO

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

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