Fabrinet (NYSE:FN) versus AAC Technologies (OTCMKTS:AACAY) Financial Review

Fabrinet (NYSE:FN) and AAC Technologies (OTCMKTS:AACAY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Risk & Volatility

Fabrinet has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, AAC Technologies has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Fabrinet and AAC Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fabrinet	10.00%	17.99%	13.26%
AAC Technologies	N/A	N/A	N/A

Insider and Institutional Ownership

97.4% of Fabrinet shares are held by institutional investors. 0.4% of Fabrinet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Fabrinet and AAC Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fabrinet	0	3	3	0	2.50
AAC Technologies	0	0	0	0	0.00

Fabrinet presently has a consensus target price of $247.50, indicating a potential downside of 17.39%. Given Fabrinet’s stronger consensus rating and higher possible upside, research analysts clearly believe Fabrinet is more favorable than AAC Technologies.

Earnings & Valuation

This table compares Fabrinet and AAC Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fabrinet	$2.88 billion	3.72	$296.18 million	$8.98	33.36
AAC Technologies	$3.80 billion	1.57	$249.99 million	N/A	N/A

Fabrinet has higher earnings, but lower revenue than AAC Technologies.

Summary

Fabrinet beats AAC Technologies on 10 of the 12 factors compared between the two stocks.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in Grand Cayman, the Cayman Islands.

About AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.