Head-To-Head Analysis: Paragon Technologies (OTCMKTS:PGNT) versus Disco (OTCMKTS:DSCSY)

Disco (OTCMKTS:DSCSY) and Paragon Technologies (OTCMKTS:PGNT) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Volatility and Risk

Disco has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Paragon Technologies has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Disco and Paragon Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Disco	31.51%	27.83%	20.48%
Paragon Technologies	N/A	N/A	N/A

Valuation & Earnings

This table compares Disco and Paragon Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Disco	$2.58 billion	12.02	$817.68 million	$0.74	38.68
Paragon Technologies	$126.47 million	0.08	$1.12 million	($0.33)	-18.12

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

Institutional and Insider Ownership

0.0% of Disco shares are owned by institutional investors. 6.1% of Paragon Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Disco and Paragon Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disco	0	1	0	0	2.00
Paragon Technologies	0	0	0	0	0.00

Summary

Disco beats Paragon Technologies on 11 of the 12 factors compared between the two stocks.

About Disco

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.

About Paragon Technologies

Paragon Technologies, Inc., together with its subsidiaries, engages in the automation, distribution, and real estate activities in North America, Latin America, Europe, and Asia. It offers various systems, software and services, including complete order fulfillment, assembly, product advancing systems, productivity, production and order fulfillment accuracy, and safety enhancements for automated material handling and order processing applications to distribution centers, manufacturers, and warehouses. The company provides towline conveyance used in heavy industrial products manufacturing and warehouses; and technologies composing patented A-Frame and Mobile-Matic robotic picking system. In addition, the company distributes servers, workstations, storage, networking, and audio-visual products, and power protection systems; notebook and desktop computers, printers, projectors, gaming products, and accessories; consumer electronics and home appliances; and offers managed services, printing, electronic documents management, and electronic invoicing, as well as high-capacity storage solutions to businesses. Further, it acquires, invests in, and manages residential real estate; and invests in businesses and marketable securities under the investment management policy. The company was formerly known as SI Handling Systems, Inc. and changed its name to Paragon Technologies, Inc. in April 2000. Paragon Technologies, Inc. was incorporated in 1958 and is headquartered in Easton, Pennsylvania.