Financial Contrast: Faro Technologies (FARO) and Trimble (TRMB)

Faro Technologies (NASDAQ: FARO) and Trimble (NASDAQ:TRMB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk & Volatility

Faro Technologies has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Trimble has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of Faro Technologies shares are owned by institutional investors. Comparatively, 88.8% of Trimble shares are owned by institutional investors. 3.1% of Faro Technologies shares are owned by insiders. Comparatively, 0.4% of Trimble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Faro Technologies and Trimble’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Faro Technologies $360.92 million 2.62 -$14.51 million $0.29 191.90
Trimble $2.65 billion 3.11 $121.10 million $1.28 25.86

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

Profitability

This table compares Faro Technologies and Trimble’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Faro Technologies -3.39% 1.91% 1.51%
Trimble 4.64% 14.28% 8.26%

Analyst Ratings

This is a breakdown of current recommendations for Faro Technologies and Trimble, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Faro Technologies 0 2 4 0 2.67
Trimble 0 4 7 0 2.64

Faro Technologies currently has a consensus target price of $56.60, suggesting a potential upside of 1.71%. Trimble has a consensus target price of $42.67, suggesting a potential upside of 28.90%. Given Trimble’s higher possible upside, analysts plainly believe Trimble is more favorable than Faro Technologies.

Summary

Trimble beats Faro Technologies on 10 of the 14 factors compared between the two stocks.

About Faro Technologies

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven, three-dimensional (3D) measurement, imaging, and realization systems. The company offers FaroArm, a combination of six or seven-axis, articulated measurement arm, a computer, and CAM2 software programs; and FARO ScanArm, a FaroArm equipped with a hard probe and non-contact laser line probe to measure products. It also provides FARO Gage, a combination of an articulated arm device with a computer and software; FARO Laser Tracker that combines a portable laser measurement tool, a computer, and CAM2 software programs; FARO Cobalt Array Imager, a metrology-grade structured light imager; FARO Tracer, which projects a laser line onto a surface or object; and FARO Focus laser scanner to measure and collect a cloud of data points. In addition, the company offers FARO Scanner Freestyle3DX, a handheld scanner that documents rooms, structures, and objects in 3D, as well as creates high-definition point clouds; and FARO Software, a proprietary computer-aided design-based measurement and laser scanner software. FARO Technologies, Inc. offers its products for manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety, cultural heritage, and other applications. The company sells its products in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom, and the United States. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida.

About Trimble

Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company operates in four segments: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. The Buildings and Infrastructure segment offers field and office software for route selection and design; systems to guide and control construction equipment; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; 3D conceptual design and modeling software; building information modeling software; integrated site layout and measurement systems; applications for sub-contractors and trades; integrated workplace management services software; capital program and facility management solutions; field based data collection systems; and communication systems and back-office software. This segment serves architects, engineers, contractors, owners, and operators. The Geospatial segment provides surveying and geospatial products and services to the construction, engineering, mining, oil and gas, energy and utilities, government, and land management sectors; and geographic information systems. The Resources and Utilities segment offers precision agriculture products and services that consist of guidance and positioning systems, automated and variable-rate application and technology systems, and information management solutions primarily to customers working in agriculture, forestry, and utilities. The Transportation segment offers solutions under the Trimble, PeopleNet, GEOTrac, TMW, and ALK Technologies brands to customers working in transportation, including transportation and logistics, automotive, rail, and field service management. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Sunnyvale, California.

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