Orbit International (OTCMKTS:ORBT) and Varex Imaging (NASDAQ:VREX) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Earnings and Valuation
This table compares Orbit International and Varex Imaging’s gross revenue, earnings per share and valuation.
Varex Imaging has higher revenue and earnings than Orbit International.
Orbit International pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. Varex Imaging does not pay a dividend.
Insider and Institutional Ownership
97.8% of Varex Imaging shares are owned by institutional investors. 11.3% of Orbit International shares are owned by company insiders. Comparatively, 1.6% of Varex Imaging shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Orbit International has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.
This is a summary of recent recommendations for Orbit International and Varex Imaging, as reported by MarketBeat.
Varex Imaging has a consensus target price of $30.50, indicating a potential upside of 19.23%. Given Varex Imaging’s higher possible upside, analysts clearly believe Varex Imaging is more favorable than Orbit International.
This table compares Orbit International and Varex Imaging’s net margins, return on equity and return on assets.
Varex Imaging beats Orbit International on 8 of the 13 factors compared between the two stocks.
About Orbit International
Orbit International Corp. designs, manufactures, and sells electronic components and subsystems, and commercial and custom power units for prime contractors, government procurement agencies, and research and development laboratories in the United States and internationally. The company operates in two segments, Electronics Group and Power Group. The Electronics Group segment engages in the design, manufacture, and sale of customized electronic components and subsystems. This segment also designs and manufactures below-deck control products for naval combat systems and gun weapon systems; and provides systems integration, production engineering, integrated logistics support, and documentation control for leading defense industry prime contractors and U.S. Department of Defense procurement agencies, as well as foreign naval programs. This segment's principal products include remote control units, intercommunication panels, displays, keyboards, keypads and pointing devices, operator control trays, command display units, and gun weapons system products. The Power Group segment designs and manufactures commercial power units, AC power, frequency converters, uninterruptible power supplies, and commercial-off-the-shelf power solutions, as well as the electronic products for measurement and display. The company was formerly known as Orbit Instrument Corp. and changed its name to Orbit International Corp. in July 1991. Orbit International Corp. was founded in 1957 and is headquartered in Hauppauge, New York.
About Varex Imaging
Varex Imaging Corporation designs and manufactures X-ray imaging components. The company operates in two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components comprising X-ray tubes, digital flat panel image detectors, high voltage connectors, image-processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers, and buckys. This segment's products are used in a range of applications, including radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy, and computer-aided detection. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors, high voltage connectors, and image-processing software for use in security and industrial inspection applications, such as airport security screening at ports and borders, as well as nondestructive examination in various applications. Varex Imaging Corporation sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. The company has operations in North America, Latin America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation is headquartered in Salt Lake City, Utah.