Head to Head Comparison: Omron (OTCMKTS:OMRNY) versus Frequency Electronics (NASDAQ:FEIM)

Omron (OTCMKTS:OMRNY) and Frequency Electronics (NASDAQ:FEIM) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Omron and Frequency Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	0	2	0	0	2.00
Frequency Electronics	0	2	1	1	2.75

Frequency Electronics has a consensus target price of $59.67, indicating a potential downside of 11.80%. Given Frequency Electronics’ stronger consensus rating and higher possible upside, analysts clearly believe Frequency Electronics is more favorable than Omron.

Valuation & Earnings

This table compares Omron and Frequency Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.10 billion	1.34	$188.01 million	$1.05	31.55
Frequency Electronics	$63.23 million	12.06	-$900,000.00	$0.25	270.60

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

Profitability

This table compares Omron and Frequency Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omron	4.04%	3.68%	2.42%
Frequency Electronics	3.68%	3.63%	2.49%

Volatility & Risk

Omron has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

1.1% of Omron shares are owned by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are owned by institutional investors. 17.3% of Frequency Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Frequency Electronics beats Omron on 9 of the 15 factors compared between the two stocks.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.