Hubbell (NYSE: HUBB) and Orbotech (NASDAQ:ORBK) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitabiliy.
Institutional & Insider Ownership
85.3% of Hubbell shares are owned by institutional investors. Comparatively, 71.6% of Orbotech shares are owned by institutional investors. 1.3% of Hubbell shares are owned by company insiders. Comparatively, 10.4% of Orbotech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Hubbell pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Orbotech does not pay a dividend. Hubbell pays out 53.0% of its earnings in the form of a dividend.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Hubbell and Orbotech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hubbell | 0 | 3 | 1 | 0 | 2.25 |
| Orbotech | 0 | 1 | 5 | 0 | 2.83 |
Hubbell presently has a consensus target price of $121.50, indicating a potential upside of 1.67%. Orbotech has a consensus target price of $37.50, indicating a potential upside of 5.54%. Given Orbotech’s stronger consensus rating and higher probable upside, analysts clearly believe Orbotech is more favorable than Hubbell.
Valuation & Earnings
This table compares Hubbell and Orbotech’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Hubbell | $3.52 billion | 1.87 | $605.20 million | $5.28 | 22.63 |
| Orbotech | $803.62 million | 2.12 | $154.54 million | $1.65 | 21.53 |
Hubbell has higher revenue and earnings than Orbotech. Orbotech is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hubbell has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Orbotech has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Hubbell and Orbotech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hubbell | 8.23% | 19.77% | 8.97% |
| Orbotech | 9.78% | 14.87% | 10.12% |
Hubbell Company Profile
Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.
Orbotech Company Profile
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
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