Veeco (VECO) versus Brooks Automation (BRKS) Head-To-Head Comparison

Veeco (NASDAQ: VECO) and Brooks Automation (NASDAQ:BRKS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

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Veeco has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Brooks Automation has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Veeco and Brooks Automation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veeco -9.24% -0.12% -0.07%
Brooks Automation 9.03% 14.43% 10.72%

Institutional and Insider Ownership

99.9% of Veeco shares are held by institutional investors. Comparatively, 90.2% of Brooks Automation shares are held by institutional investors. 2.6% of Veeco shares are held by company insiders. Comparatively, 2.4% of Brooks Automation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Veeco and Brooks Automation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeco $484.76 million 1.59 -$44.79 million ($0.02) -802.50
Brooks Automation $692.89 million 2.61 $62.61 million $1.24 20.72

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

Analyst Recommendations

This is a breakdown of current ratings for Veeco and Brooks Automation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeco 0 2 4 0 2.67
Brooks Automation 0 2 5 0 2.71

Veeco presently has a consensus price target of $28.67, indicating a potential upside of 78.61%. Brooks Automation has a consensus price target of $33.57, indicating a potential upside of 30.68%. Given Veeco’s higher probable upside, equities research analysts plainly believe Veeco is more favorable than Brooks Automation.

Dividends

Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Veeco does not pay a dividend. Brooks Automation pays out 32.3% of its earnings in the form of a dividend.

Summary

Brooks Automation beats Veeco on 12 of the 16 factors compared between the two stocks.

Veeco Company Profile

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor process equipment worldwide. It offers metal organic chemical vapor deposition systems; packaging lithography equipment; precision surface processing systems; laser annealing systems; ion beam etch and deposition systems; molecular beam epitaxy systems; 3D wafer inspection systems; and atomic layer deposition and other deposition systems. The company sells its products to light emitting diode, micro-electro mechanical system, outsourced semiconductor assembly and test, HDD, and semiconductor manufacturers, as well as research centers and universities. Veeco Instruments Inc. was founded in 1945 and is headquartered in Plainview, New York.

Brooks Automation Company Profile

Brooks Automation, Inc. provides automation and cryogenic solutions for various applications and markets. It operates in two segments, Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum, and contamination controls solutions and services. Its products include atmospheric and vacuum robots, robotic modules, and tool automation systems that offer precision handling and clean wafer environments; automated cleaning and inspection systems for wafer carriers, as well as reticle pod cleaners and stockers; and vacuum pumping and thermal management solutions for critical process vacuum applications. This segment also offers repair, diagnostic, and installation services, as well as spare parts and productivity enhancement upgrade services. The Brooks Life Science Systems segment provides automated cold storage systems; consumables, including various formats of racks, tubes, caps, plates, and foils; and instruments used for labeling, bar coding, capping, decapping, auditing, sealing, peeling, and piercing tubes and plates. It also provides sample management services, such as on-site and off-site sample storage, cold chain logistics, sample relocation, bio-processing, disaster recovery, and business continuity, as well as project management and consulting. In addition, this segment offers sample intelligence software solutions and customer technology integration; and laboratory work flow scheduling for life science tools and instrument work cells, sample inventory and logistics, environmental and temperature monitoring, and clinical trial and consent management, as well as planning, data management, virtualization, and visualization services. The company serves semiconductor capital equipment and sample management markets for life sciences in approximately 50 countries. Brooks Automation, Inc. was founded in 1978 and is headquartered in Chelmsford, Massachusetts.

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