American Superconductor (NASDAQ:AMSC – Get Free Report) and Fabrinet (NYSE:FN – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
52.3% of American Superconductor shares are owned by institutional investors. Comparatively, 97.4% of Fabrinet shares are owned by institutional investors. 4.8% of American Superconductor shares are owned by insiders. Comparatively, 0.4% of Fabrinet shares are owned 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.
Valuation and Earnings
This table compares American Superconductor and Fabrinet”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Superconductor | $222.82 million | 10.91 | $6.03 million | $0.39 | 138.05 |
| Fabrinet | $3.42 billion | 3.72 | $332.53 million | $9.18 | 38.79 |
Fabrinet has higher revenue and earnings than American Superconductor. Fabrinet is trading at a lower price-to-earnings ratio than American Superconductor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for American Superconductor and Fabrinet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Superconductor | 0 | 0 | 3 | 0 | 3.00 |
| Fabrinet | 0 | 3 | 4 | 0 | 2.57 |
American Superconductor currently has a consensus price target of $33.67, suggesting a potential downside of 37.47%. Fabrinet has a consensus price target of $312.33, suggesting a potential downside of 12.29%. Given Fabrinet’s higher probable upside, analysts plainly believe Fabrinet is more favorable than American Superconductor.
Profitability
This table compares American Superconductor and Fabrinet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Superconductor | 6.00% | 9.35% | 6.20% |
| Fabrinet | 9.72% | 17.77% | 12.88% |
Volatility and Risk
American Superconductor has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Summary
Fabrinet beats American Superconductor on 9 of the 14 factors compared between the two stocks.
About American Superconductor
American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship’s magnetic signature; and ON board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment’s design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.
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.
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