Federal Signal (NYSE:FSS) versus First Pacific (OTCMKTS:FPAFY) Critical Comparison

Federal Signal (NYSE:FSS) and First Pacific (OTCMKTS:FPAFY) are both mid-cap multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Federal Signal and First Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Signal	11.56%	21.18%	13.14%
First Pacific	N/A	N/A	N/A

Risk & Volatility

Federal Signal has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, First Pacific has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Valuation and Earnings

This table compares Federal Signal and First Pacific”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Signal	$2.18 billion	3.30	$246.60 million	$4.40	26.77
First Pacific	$10.23 billion	0.29	$661.00 million	N/A	N/A

First Pacific has higher revenue and earnings than Federal Signal.

Insider and Institutional Ownership

92.7% of Federal Signal shares are held by institutional investors. Comparatively, 0.0% of First Pacific shares are held by institutional investors. 3.3% of Federal Signal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Federal Signal pays an annual dividend of $0.60 per share and has a dividend yield of 0.5%. First Pacific pays an annual dividend of $0.15 per share and has a dividend yield of 4.3%. Federal Signal pays out 13.6% of its earnings in the form of a dividend. Federal Signal has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Federal Signal and First Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Signal	0	1	4	1	3.00
First Pacific	0	0	0	0	0.00

Federal Signal currently has a consensus target price of $139.25, suggesting a potential upside of 18.22%. Given Federal Signal’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Federal Signal is more favorable than First Pacific.

Summary

Federal Signal beats First Pacific on 12 of the 16 factors compared between the two stocks.

About Federal Signal

Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.

About First Pacific

First Pacific Company Limited, an investment holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Singapore, the Middle East, Africa, and internationally. The company offers a range of telecommunications and digital services, including fiber optic backbone, and fixed line and cellular networks. It also manufactures and distributes a range of food products, including noodles, dairy products, snack foods, food seasonings, nutrition and special foods, beverages, wheat flour, and pasta; breeds seeds; cultivates oil palm, rubber, sugar cane, and other crops; and offers cooking oils, margarines, and shortenings. In addition, the company explores for, mines, and produces gold, copper, and silver; and produces sugar and bioethanol. Further, it is involved in the operation of gas-fired power plant; provision of water distribution, sewerage, and sanitation services; and operation of toll roads and rails, as well as distribution of electricity. First Pacific Company Limited was founded in 1981 and is headquartered in Central, Hong Kong.