Head-To-Head Analysis: Newport Corp (NEWP) vs. Snap-On (SNA)

Newport Corp (NASDAQ: NEWP) and Snap-On (NYSE:SNA) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Newport Corp and Snap-On’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newport Corp 6.37% 10.63% 6.60%
Snap-On 16.22% 20.90% 11.89%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Newport Corp and Snap-On, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newport Corp 0 0 0 0 N/A
Snap-On 0 2 5 0 2.71

Snap-On has a consensus price target of $197.00, suggesting a potential upside of 29.94%. Given Snap-On’s higher probable upside, analysts clearly believe Snap-On is more favorable than Newport Corp.

Valuation and Earnings

This table compares Newport Corp and Snap-On’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Newport Corp N/A N/A N/A N/A N/A
Snap-On $3.83 billion 2.28 $971.00 million $9.68 15.66

Snap-On has higher revenue and earnings than Newport Corp.

Insider & Institutional Ownership

93.1% of Snap-On shares are held by institutional investors. 3.7% of Snap-On shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Snap-On pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Newport Corp does not pay a dividend. Snap-On pays out 29.3% of its earnings in the form of a dividend. Snap-On has raised its dividend for 7 consecutive years.

Summary

Snap-On beats Newport Corp on 10 of the 11 factors compared between the two stocks.

Newport Corp Company Profile

Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.

Snap-On Company Profile

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.

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