Critical Review: OMRON (OTCMKTS:OMRNY) and Renishaw (OTCMKTS:RNSHF)

Renishaw (OTCMKTS:RNSHF) and OMRON (OTCMKTS:OMRNY) are both mid-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Risk and Volatility

Renishaw has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, OMRON has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Renishaw and OMRON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Renishaw	N/A	N/A	N/A
OMRON	-0.11%	-0.09%	-0.06%

Valuation & Earnings

This table compares Renishaw and OMRON”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Renishaw	$870.59 million	3.53	$122.02 million	N/A	N/A
OMRON	$5.67 billion	1.20	$55.92 million	($0.02)	-1,646.43

Renishaw has higher earnings, but lower revenue than OMRON.

Institutional & Insider Ownership

0.2% of Renishaw shares are held by institutional investors. Comparatively, 1.1% of OMRON shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Renishaw and OMRON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renishaw	1	0	0	0	1.00
OMRON	0	0	0	0	0.00

Summary

Renishaw beats OMRON on 6 of the 9 factors compared between the two stocks.

About Renishaw

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services technological products and services, and analytical instruments and medical devices worldwide. The company offers co-ordinate measuring machine products, hardware, software, retrofits, machine tool probes, diagnostics, encoders, tool setters, performance measurement systems, gauging systems, modular and custom fixtures, and styli products for touch probe systems; machine calibration and optimization products; interferometric laser, magnetic, and open and enclosed optical encoders; and additive manufacturing systems. It also provides healthcare products, such as neurosurgical robots and accessories, neurosurgical planning software, electrode delivery systems, drug delivery systems, Raman microscopes, analysers, and hybrid Raman systems. In addition, the company offers smart manufacturing data platform and asset financing services. It serves the aerospace, automotive, consumer electronics, medical and healthcare, heavy, machine builder, and precision manufacturing industries, as well as scientific, research, and analysis industries. The company was incorporated in 1973 and is headquartered in Wotton-under-Edge, the United Kingdom.

About OMRON

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.