CyberOptics Corporation (NASDAQ: CYBE) and Fabrinet (NYSE:FN) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, valuation, analyst recommendations and dividends.
Analyst Recommendations
This is a breakdown of recent ratings for CyberOptics Corporation and Fabrinet, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CyberOptics Corporation | 0 | 0 | 3 | 0 | 3.00 |
| Fabrinet | 0 | 0 | 4 | 1 | 3.20 |
CyberOptics Corporation currently has a consensus price target of $35.00, indicating a potential upside of 128.76%. Fabrinet has a consensus price target of $53.55, indicating a potential upside of 26.06%. Given CyberOptics Corporation’s higher possible upside, analysts plainly believe CyberOptics Corporation is more favorable than Fabrinet.
Profitability
This table compares CyberOptics Corporation and Fabrinet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CyberOptics Corporation | 14.32% | 6.06% | 4.99% |
| Fabrinet | 6.74% | 14.95% | 9.71% |
Risk and Volatility
CyberOptics Corporation has a beta of -0.38, meaning that its stock price is 138% less volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Insider and Institutional Ownership
51.0% of CyberOptics Corporation shares are held by institutional investors. Comparatively, 93.7% of Fabrinet shares are held by institutional investors. 4.8% of CyberOptics Corporation shares are held by insiders. Comparatively, 4.3% of Fabrinet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares CyberOptics Corporation and Fabrinet’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| CyberOptics Corporation | $56.82 million | 1.87 | $5.04 million | $1.13 | 13.54 |
| Fabrinet | $1.33 billion | 1.19 | $121.84 million | $2.38 | 17.85 |
Fabrinet has higher revenue and earnings than CyberOptics Corporation. CyberOptics Corporation is trading at a lower price-to-earnings ratio than Fabrinet, indicating that it is currently the more affordable of the two stocks.
Summary
Fabrinet beats CyberOptics Corporation on 10 of the 15 factors compared between the two stocks.
About CyberOptics Corporation
Cyberoptics Corporation is a developer and manufacturer of sensing technology solutions. The Company’s products and services are used in the surface mount technology (SMT), semiconductor and three dimensional (3D) scanning solutions and services markets. Its products are sold into the electronics assembly, dynamic random access memory (DRAM) and flash memory, and semiconductor fabrication capital equipment markets. The Company develops, manufactures and sells non-contact sensors and systems for process control and inspection, and general purpose metrology. The Company’s product offerings are sold to original equipment manufacturers (OEMs) and end user customers in the SMT circuit board assembly, semiconductor and general-purpose metrology markets. Its OEMs incorporate the Company’s sensor offerings into capital equipment serving these industries. The Company also sells standalone inspection systems that are sold directly to circuit board assembly companies.
About Fabrinet
Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company’s customer base includes companies in industries that require precision manufacturing capabilities, such as optical communications, industrial lasers, automotive, medical and sensors. Its customers in these industries support end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.
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