Analyzing Cabot Microelectronics Corporation (CCMP) and Coherent (COHR)
Cabot Microelectronics Corporation (NASDAQ: CCMP) and Coherent (NASDAQ:COHR) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
This table compares Cabot Microelectronics Corporation and Coherent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cabot Microelectronics Corporation||16.41%||16.08%||11.31%|
Cabot Microelectronics Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Coherent does not pay a dividend. Cabot Microelectronics Corporation pays out 25.1% of its earnings in the form of a dividend.
Risk & Volatility
Cabot Microelectronics Corporation has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Coherent has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cabot Microelectronics Corporation and Coherent’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cabot Microelectronics Corporation||$493.08 million||3.61||$131.35 million||$3.19||22.09|
|Coherent||$1.48 billion||3.56||$369.20 million||$6.63||32.36|
Coherent has higher revenue and earnings than Cabot Microelectronics Corporation. Cabot Microelectronics Corporation is trading at a lower price-to-earnings ratio than Coherent, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Cabot Microelectronics Corporation and Coherent, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cabot Microelectronics Corporation||0||1||2||0||2.67|
Cabot Microelectronics Corporation presently has a consensus price target of $80.00, suggesting a potential upside of 13.52%. Coherent has a consensus price target of $266.43, suggesting a potential upside of 24.19%. Given Coherent’s stronger consensus rating and higher possible upside, analysts plainly believe Coherent is more favorable than Cabot Microelectronics Corporation.
Insider & Institutional Ownership
94.4% of Cabot Microelectronics Corporation shares are held by institutional investors. Comparatively, 92.9% of Coherent shares are held by institutional investors. 5.5% of Cabot Microelectronics Corporation shares are held by insiders. Comparatively, 1.4% of Coherent shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Coherent beats Cabot Microelectronics Corporation on 10 of the 16 factors compared between the two stocks.
About Cabot Microelectronics Corporation
Cabot Microelectronics Corporation supplies polishing slurries and pads used in the manufacture of integrated circuit (IC) devices within the semiconductor industry, in a process called chemical mechanical planarization (CMP). The Company is engaged in the development, manufacture and sale of CMP consumables. The Company develops, produces and sells CMP slurries for polishing conducting and insulating materials used in IC devices, and also for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells CMP polishing pads, which are used in conjunction with slurries in the CMP process. The Company also pursues other surface modification applications through its engineered surface finishes (ESF) business. The Company offers CMP polishing pads, under the Epic and NexPlanar brand names, for a range of applications and technology nodes.
Coherent, Inc. is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. It operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC). SLS develops and manufactures configurable products serving the microelectronics, scientific research and government programs, and original equipment manufacturer (OEM) components and instrumentation markets. The Commercial Lasers and Components segment focuses on higher volume products that are offered in set configurations. The product architectures are designed for exchange at the point of use such that substantially all product service and repairs are based upon advanced replacement and depot (that is factory) repair. CLC’s primary markets include materials processing, OEM components, and instrumentation and microelectronics.
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