Analyzing Standex International (NYSE:SXI) and Fabrinet (NYSE:FN)

Fabrinet (NYSE:FN) and Standex International (NYSE:SXI) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Fabrinet and Standex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fabrinet	9.35%	22.32%	14.07%
Standex International	12.54%	14.84%	7.14%

Risk & Volatility

Fabrinet has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Standex International has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares Fabrinet and Standex International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fabrinet	$4.64 billion	2.51	$473.03 million	$13.25	24.61
Standex International	$891.60 million	3.27	$104.63 million	$9.40	25.59

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

Insider and Institutional Ownership

97.4% of Fabrinet shares are owned by institutional investors. Comparatively, 90.3% of Standex International shares are owned by institutional investors. 0.2% of Fabrinet shares are owned by insiders. Comparatively, 2.0% of Standex International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Fabrinet and Standex International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fabrinet	0	3	6	1	2.80
Standex International	0	3	3	0	2.50

Fabrinet currently has a consensus price target of $548.88, indicating a potential upside of 68.31%. Standex International has a consensus price target of $304.00, indicating a potential upside of 26.35%. Given Fabrinet’s stronger consensus rating and higher possible upside, analysts clearly believe Fabrinet is more favorable than Standex International.

Summary

Fabrinet beats Standex International on 11 of the 15 factors compared between the two stocks.

About Fabrinet

Fabrinet (NYSE: FN) is a provider of advanced optical packaging and precision manufacturing services. The company works with original equipment manufacturers and other technology companies to produce complex products that require specialized engineering and manufacturing capabilities. Its services include product design and engineering support, prototyping, supply-chain management, and manufacturing. Fabrinet’s products serve markets including optical communications, industrial lasers, automotive technology, and medical devices.

About Standex International

Standex International is a diversified industrial manufacturer serving customers in markets that include electronics, life sciences, aerospace, and industrial manufacturing. Founded in 1955, the company has expanded through the development and acquisition of specialized businesses and serves customers around the world. Its Electronics businesses make components such as magnetic sensors, reed switches, and relays used in applications ranging from automotive and medical equipment to industrial controls.