Veeco Instruments (NASDAQ:VECO) vs. GEA Group Aktiengesellschaft (NASDAQ:GEAGY) Financial Review

Veeco Instruments (NASDAQ:VECO) and GEA Group Aktiengesellschaft (OTCMKTS:GEAGY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Veeco Instruments and GEA Group Aktiengesellschaft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veeco Instruments -84.86% -3.17% -1.64%
GEA Group Aktiengesellschaft 4.50% 8.46% 3.52%

Analyst Ratings

This is a summary of current recommendations and price targets for Veeco Instruments and GEA Group Aktiengesellschaft, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeco Instruments 0 1 2 0 2.67
GEA Group Aktiengesellschaft 0 0 1 0 3.00

Veeco Instruments currently has a consensus target price of $13.67, suggesting a potential upside of 24.81%. Given Veeco Instruments’ higher possible upside, research analysts clearly believe Veeco Instruments is more favorable than GEA Group Aktiengesellschaft.

Dividends

GEA Group Aktiengesellschaft pays an annual dividend of $0.94 per share and has a dividend yield of 3.3%. Veeco Instruments does not pay a dividend.

Earnings & Valuation

This table compares Veeco Instruments and GEA Group Aktiengesellschaft’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeco Instruments $542.08 million 0.98 -$407.09 million ($0.04) -273.75
GEA Group Aktiengesellschaft $5.20 billion N/A $274.97 million N/A N/A

GEA Group Aktiengesellschaft has higher revenue and earnings than Veeco Instruments.

Institutional and Insider Ownership

91.3% of Veeco Instruments shares are held by institutional investors. 3.0% of Veeco Instruments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Veeco Instruments has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, GEA Group Aktiengesellschaft has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

GEA Group Aktiengesellschaft beats Veeco Instruments on 7 of the 12 factors compared between the two stocks.

About Veeco Instruments

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices worldwide. It offers metal organic chemical vapor deposition systems; packaging lithography equipment; precision surface processing systems; laser annealing systems; ion beam deposition and etch systems; molecular beam epitaxy systems; 3D wafer inspection systems; and atomic layer deposition and other deposition systems. The company sells its process equipment systems for use in the production of a range of microelectronic components, including light emitting diodes, micro-electro mechanical systems, radio frequency filters and amplifiers, power electronics, thin film magnetic heads, and laser diodes; and 3D NAND, DRAM, logic, and other semiconductor devices, as well as for research centers and universities. Veeco Instruments Inc. was founded in 1989 and is headquartered in Plainview, New York.

About GEA Group Aktiengesellschaft

GEA Group Aktiengesellschaft focuses on the development and production of process technology and components for the food processing industry worldwide. It operates in two segments, Business Area Equipment and Business Area Solutions. The Business Area Equipment segment offers separators, valves, pumps, homogenizers, and refrigeration compressors, as well as process technology solutions for food processing and packaging applications; and dairy equipment, feeding systems, and slurry engineering solutions. The Business Area Solutions segment provides process solutions for the food and beverages, pharma, and chemical industries. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.

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