Xperi (NASDAQ:XPER) and Brooks Automation (NASDAQ:BRKS) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional and Insider Ownership
86.2% of Xperi shares are owned by institutional investors. Comparatively, 95.3% of Brooks Automation shares are owned by institutional investors. 1.8% of Xperi shares are owned by insiders. Comparatively, 1.6% of Brooks Automation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Xperi pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Xperi pays out 7.8% of its earnings in the form of a dividend. Brooks Automation pays out 31.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Xperi is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Xperi and Brooks Automation's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Xperi | $280.07 million | 8.24 | $-62,530,000.00 | $2.56 | 8.53 |
Brooks Automation | $897.27 million | 6.98 | $64.85 million | $1.26 | 67.00 |
Brooks Automation has higher revenue and earnings than Xperi. Xperi is trading at a lower price-to-earnings ratio than Brooks Automation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Xperi and Brooks Automation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Xperi | 0 | 0 | 5 | 0 | 3.00 |
Brooks Automation | 0 | 2 | 6 | 0 | 2.75 |
Xperi currently has a consensus price target of $26.50, suggesting a potential upside of 21.39%. Brooks Automation has a consensus price target of $64.8750, suggesting a potential downside of 23.15%. Given Xperi's stronger consensus rating and higher possible upside, research analysts clearly believe Xperi is more favorable than Brooks Automation.
Profitability
This table compares Xperi and Brooks Automation's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Xperi | -8.65% | 18.37% | 9.41% |
Brooks Automation | 7.23% | 7.95% | 6.13% |
Risk and Volatility
Xperi has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Brooks Automation has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.
Summary
Xperi beats Brooks Automation on 9 of the 16 factors compared between the two stocks.