Schmitt Industries (NASDAQ:SMIT) and Cognex (NASDAQ:CGNX) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Risk and Volatility
Schmitt Industries has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Cognex has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.
Cognex pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Schmitt Industries does not pay a dividend. Cognex pays out 13.8% of its earnings in the form of a dividend. Cognex has raised its dividend for 9 consecutive years.
This is a summary of recent ratings for Schmitt Industries and Cognex, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cognex has a consensus target price of $48.61, indicating a potential upside of 13.20%. Given Cognex’s higher probable upside, analysts clearly believe Cognex is more favorable than Schmitt Industries.
This table compares Schmitt Industries and Cognex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
29.1% of Schmitt Industries shares are owned by institutional investors. Comparatively, 91.0% of Cognex shares are owned by institutional investors. 13.0% of Schmitt Industries shares are owned by insiders. Comparatively, 5.4% of Cognex shares are owned by 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 & Earnings
This table compares Schmitt Industries and Cognex’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schmitt Industries||$13.89 million||0.85||$210,000.00||N/A||N/A|
|Cognex||$747.95 million||9.89||$177.17 million||$1.45||29.61|
Cognex has higher revenue and earnings than Schmitt Industries.
Cognex beats Schmitt Industries on 12 of the 14 factors compared between the two stocks.
Schmitt Industries Company Profile
Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide. The company's Balancer segment offers computer-controlled vibration detection, balancing, and process control systems. Its products comprise Schmitt Dynamic Balance System, which consists of a vibration sensor, a computer control unit, and a balance head; SB-5500, an optional acoustic emission monitoring system (AEMS) control card to monitor the AE signals generated on the grinding machine; process control cards to provide enhanced control of the grinding process; SB-2000, a compact manual balancing system; and AE-1000, an AE control platform, which reduces air machine grinding time. This segment sells its products to end user operators, as well as manufacturers of grinding machines for automotive, industrial, aerospace, and medical industries through independent manufacturers' representatives and distributors. Its Measurement segment provides laser and white light sensors for distance, dimensional, and area measurement for various commercial applications; and ultrasonic measurement products that measure the levels of liquid tanks and transmit that data through satellite to a secure Website for display. This segment's products include distance measurement, laser displacement, and chromatic confocal sensors, as well as laser line scanners; and remote tank monitoring products. The company offers its products under the SBS, Acuity, Xact, SMS, Lasercheck, and AccuProfile trademarks. Schmitt Industries, Inc. was founded in 1984 and is headquartered in Portland, Oregon.
Cognex Company Profile
Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes worldwide. The company offers machine vision products, which are used to automate the manufacturing and tracking of discrete items, such as mobile phones, aspirin bottles, and automobile tires by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. Its products include VisionPro, a software suite that provides various vision tools for programming; displacement sensors with vision software for use in 3D application; In-Sight vision systems that perform various vision tasks, including part location, identification, measurement, assembly verification, and robotic guidance; In-Sight vision sensors; ID products, including DataMan barcode readers and barcode verifiers, as well as vision-enabled mobile terminals for industrial barcode reading applications; and barcode scanning software development kits. The company sells its products to customers in the consumer electronics and automotive industries, and semiconductor and electronics capital equipment markets through direct sales force, as well as through a network of distributors and integrators. Cognex Corporation was founded in 1981 and is headquartered in Natick, Massachusetts.
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