Orbit International (OTCMKTS:ORBT – Get Free Report) and Cemtrex (NASDAQ:CETX – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Orbit International and Cemtrex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orbit International | -11.59% | -19.05% | -13.10% |
| Cemtrex | -26.92% | -443.32% | -33.83% |
Risk and Volatility
Orbit International has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Cemtrex has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orbit International | 0 | 0 | 0 | 0 | 0.00 |
| Cemtrex | 1 | 0 | 0 | 0 | 1.00 |
Earnings and Valuation
This table compares Orbit International and Cemtrex”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orbit International | $29.90 million | 0.49 | -$650,000.00 | ($1.38) | -2.98 |
| Cemtrex | $76.10 million | 0.03 | -$7.23 million | ($172.57) | -0.02 |
Orbit International has higher earnings, but lower revenue than Cemtrex. Orbit International is trading at a lower price-to-earnings ratio than Cemtrex, indicating that it is currently the more affordable of the two stocks.
Dividends
Orbit International pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Cemtrex pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Orbit International pays out -0.7% of its earnings in the form of a dividend. Cemtrex pays out 0.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider & Institutional Ownership
2.0% of Cemtrex shares are owned by institutional investors. 11.3% of Orbit International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Orbit International beats Cemtrex on 8 of the 14 factors compared between the two stocks.
About Orbit International
Orbit International Corp. engages in the design, manufacture, and sale of electronic components and subsystems, and commercial and custom power units for prime contractors, government procurement agencies, and research and development laboratories worldwide. The company operates in two segments, Electronics Group and Power Group. The Electronics Group segment designs, manufactures, and sells customized electronic components and subsystems. This segment offers remote control units, intercommunication panels, displays, keyboards, keypads and pointing devices, operator control trays, and command display units, as well as provides LCD display modules, military simulation and training bezels, electronic control assemblies, and multi-function displays design and enhancement services. The Power Group segment designs and manufactures commercial power units, AC power, frequency converters, uninterruptible power supplies, armament systems, and commercial-off-the-shelf power solutions, as well as inverters. The company was formerly known as Orbit Instrument Corp. and changed its name to Orbit International Corp. in July 1991. Orbit International Corp. was founded in 1957 and is based in Hauppauge, New York.
About Cemtrex
Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.
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