One Horizon Group (OHGI) versus Fabrinet (FN) Critical Review

One Horizon Group (NASDAQ: OHGI) and Fabrinet (NYSE:FN) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Volatility & Risk

One Horizon Group has a beta of 2.87, meaning that its stock price is 187% more volatile than the S&P 500. Comparatively, Fabrinet has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of One Horizon Group shares are held by institutional investors. Comparatively, 98.2% of Fabrinet shares are held by institutional investors. 19.0% of One Horizon Group shares are held by company insiders. Comparatively, 3.3% of Fabrinet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares One Horizon Group and Fabrinet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
One Horizon Group $710,000.00 33.05 -$7.43 million N/A N/A
Fabrinet $1.42 billion 0.95 $97.11 million $2.57 14.25

Fabrinet has higher revenue and earnings than One Horizon Group.

Profitability

This table compares One Horizon Group and Fabrinet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
One Horizon Group -399.31% -111.52% -50.04%
Fabrinet 6.36% 12.48% 8.52%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for One Horizon Group and Fabrinet, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
One Horizon Group 0 0 0 0 N/A
Fabrinet 0 1 4 1 3.00

Fabrinet has a consensus price target of $40.17, suggesting a potential upside of 9.69%. Given Fabrinet’s higher probable upside, analysts plainly believe Fabrinet is more favorable than One Horizon Group.

Summary

Fabrinet beats One Horizon Group on 9 of the 12 factors compared between the two stocks.

About One Horizon Group

One Horizon Group, Inc. develops and licenses software for mobile voice over Internet protocol (VoIP) in China, Rest of Asia, Europe, Russia, and the Americas. The company develops Horizon Platform, a tool that can be used by mobile operators to compete against the over the top provider's applications that are running on their networks; and Horizon Call, a mobile application, which enables bandwidth-efficient VoIP calls over a smartphone using a 2G/EDGE, 3G, 4G/LTE, Wi-Fi, or satellite connection. It offers retail smartphone VoIP, messaging, and advertising service under the Aishuo brand name; and software maintenance services. The company sells its software, branding, hosting, and operator services to telecommunications operators, enterprises, operators in fixed line telephony, cable TV operators, and to the satellite communications sector. One Horizon Group, Inc. is based in London, the United Kingdom.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices, and sensors. It offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and test. The company's products comprise switching products, such as reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths and speeds, and over various distances; tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as for Infiniband, Ethernet, fiber channel, and optical backplane connectivity. It also offers solid state, diode-pumped, gas, and fiber lasers used across semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and sensors, such as differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. In addition, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, and laser components and substrates, as well as other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It has operations in North America, the Asia-Pacific, and Europe. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.

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