Financial Contrast: FST (NASDAQ:KBSX) and Beamz Interactive (OTCMKTS:BZIC)

Beamz Interactive (OTCMKTS:BZIC) and FST (NASDAQ:KBSX) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Institutional & Insider Ownership

50.5% of Beamz Interactive shares are held by institutional investors. Comparatively, 50.9% of FST shares are held by institutional investors. 10.5% of Beamz Interactive shares are held by company insiders. Comparatively, 54.6% of FST shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Beamz Interactive and FST’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beamz Interactive	N/A	N/A	N/A
FST	-0.90%	1.66%	0.40%

Analyst Recommendations

This is a summary of current ratings and price targets for Beamz Interactive and FST, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beamz Interactive	0	0	0	0	0.00
FST	1	0	1	0	2.00

FST has a consensus price target of $4.00, indicating a potential upside of 296.04%. Given FST’s stronger consensus rating and higher probable upside, analysts plainly believe FST is more favorable than Beamz Interactive.

Valuation and Earnings

This table compares Beamz Interactive and FST”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beamz Interactive	N/A	N/A	N/A	($0.15)	N/A
FST	$47.97 million	0.79	-$1.50 million	($0.01)	-101.00

Beamz Interactive has higher earnings, but lower revenue than FST. FST is trading at a lower price-to-earnings ratio than Beamz Interactive, indicating that it is currently the more affordable of the two stocks.

Summary

FST beats Beamz Interactive on 9 of the 11 factors compared between the two stocks.

About Beamz Interactive

Beamz Interactive, Inc. develops and sells interactive laser controller technology for various music, game, education, therapy, senior care, lighting, and consumer applications worldwide. The company's product offerings consist of the Beamz Education and Healthcare product family, which includes the Beamz EHC Professional Edition designed for use by professionals in educational or therapeutic settings, and Home Edition, which is designed to participate in making music; the Beamz By Flo consumer product family; and stand-alone software applications that work on PCs, MACs, iPhones, iPads, and Android devices without connecting to the Beamz hardware. Beamz Interactive, Inc. provides its products online, as well as directly to education markets. The company has entered into agreements with The Learning Station and Gigglebellies (Magic Factory) to adapt early learning educational and entertainment videos. The company was formerly known as HumanBeams, Inc. and changed its name to Beamz Interactive, Inc. in December 2007. Beamz Interactive, Inc. was founded in 2001 and is based in Scottsdale, Arizona.

About FST

FST Corp. designs, manufactures, markets, and distributes steel golf shafts to golf club original equipment manufacturers and distributors worldwide. The company offers steel shafts under the KBS brand name. FST Corp.is based in Chiayi, Taiwan.