Critical Survey: TTM Technologies (NASDAQ:TTMI) vs. Fabrinet (NYSE:FN)

TTM Technologies (NASDAQ:TTMI) and Fabrinet (NYSE:FN) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares TTM Technologies and Fabrinet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TTM Technologies	$2.91 billion	5.99	$177.45 million	$1.85	90.61
Fabrinet	$3.42 billion	6.52	$332.53 million	$11.64	53.44

Fabrinet has higher revenue and earnings than TTM Technologies. Fabrinet is trading at a lower price-to-earnings ratio than TTM Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

TTM Technologies has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for TTM Technologies and Fabrinet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TTM Technologies	0	0	5	1	3.17
Fabrinet	0	3	6	1	2.80

TTM Technologies currently has a consensus price target of $209.00, indicating a potential upside of 24.69%. Fabrinet has a consensus price target of $661.75, indicating a potential upside of 6.38%. Given TTM Technologies’ stronger consensus rating and higher possible upside, equities analysts plainly believe TTM Technologies is more favorable than Fabrinet.

Institutional and Insider Ownership

95.8% of TTM Technologies shares are held by institutional investors. Comparatively, 97.4% of Fabrinet shares are held by institutional investors. 1.3% of TTM Technologies shares are held by insiders. Comparatively, 0.2% of Fabrinet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares TTM Technologies and Fabrinet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TTM Technologies	6.29%	13.70%	6.29%
Fabrinet	9.94%	19.83%	13.41%

Summary

Fabrinet beats TTM Technologies on 9 of the 14 factors compared between the two stocks.

About TTM Technologies

TTM Technologies, Inc., together with its subsidiaries, manufactures and sells mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and printed circuit boards (PCB) worldwide. The company operates in two segments, PCB and RF&S Components. It offers range of engineered systems, RF and microwave assemblies, HDI PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, IC substrates, passive RF components, advanced ceramic RF components, hi-reliability multi-chip modules, beamforming and switching networks, PCB products, RF components, and backplane/custom assembly solutions, including conventional PCBs. It also provides advanced ceramic RF components including standard and etched thick-film ceramic substrates; and hi-reliability multi-chip modules. In addition, the company offers radar systems including maritime surveillance and weather avoidance radar systems, surveillance products, communication systems, RF assembly and test services, and passive RF components. Further, the company provides custom designed application specific integrated circuits, high density interconnect, IC substrates, flexible and rigid flex PCBs, and custom assemblies including backplane and mid-plane assemblies, flexible and rigid-flex assemblies, and RF assemblies, as well as conventional PCBs, such as single-sided, double-sided, and multi-layer boards. Additionally, it offers quick turnaround services, which includes prototype production and ramp-to-volume production, and thermal management. The company serves original equipment manufacturers and electronic manufacturing services providers, original design manufacturers, distributors, and government agencies; and aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, as well as networking applications. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.

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.