Critical Review: Ouster (NYSE:OUST) & FIT Hon Teng (OTCMKTS:FITGF)

Ouster (NYSE:OUST) and FIT Hon Teng (OTCMKTS:FITGF) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Ouster and FIT Hon Teng’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ouster	-122.32%	-68.48%	-38.06%
FIT Hon Teng	N/A	N/A	N/A

Institutional and Insider Ownership

31.5% of Ouster shares are held by institutional investors. 7.8% of Ouster shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Ouster and FIT Hon Teng”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ouster	$99.59 million	3.41	-$374.11 million	($5.58)	-1.35
FIT Hon Teng	N/A	N/A	N/A	N/A	N/A

FIT Hon Teng has lower revenue, but higher earnings than Ouster.

Analyst Ratings

This is a summary of recent ratings and price targets for Ouster and FIT Hon Teng, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ouster	0	2	3	0	2.60
FIT Hon Teng	0	0	0	0	N/A

Ouster currently has a consensus price target of $13.40, indicating a potential upside of 78.43%. Given Ouster’s higher probable upside, equities research analysts plainly believe Ouster is more favorable than FIT Hon Teng.

Summary

Ouster beats FIT Hon Teng on 5 of the 8 factors compared between the two stocks.

About Ouster

Ouster, Inc. provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions. The company offers Ouster Sensor, a scanning sensor; and Digital Flash, a solid-state flash sensor. It also provides surround-view lidar sensors, which include Ouster Gemini, a perception platform for smart infrastructure deployments; and Blue City, a Gemini-powered solution for traffic operations, planning, and safety. The company is headquartered in San Francisco, California.

About FIT Hon Teng

FIT Hon Teng Limited manufactures and sells mobile and wireless devices and connectors in Taiwan and internationally. It operates in two segments, Intermediate Products and Consumer Products. The company provides RF antenna cable and module assemblies; coaxial, internal, external, RJ, wire harness, USB, E/M, EM, flat, high speed, power, ribbon, SAS, and S-ATA cable assemblies; light source products; backplane, card, edgecard, memory, high speed, input/output, power, storage, and wire to board/board to board connectors; sockets and terminal blocks; and wired headsets, speaker systems, and power accessories. It also engages in the development, manufacture, and marketing of electronic and optoelectronic connectors, antennas, acoustic components, and cables and modules; sale of interconnect solutions; sale of consumer electronics and connectivity solutions; warehousing, distribution, and sale activities; development of technologies in the field of dynamic loudspeakers and acoustic technologies; and research, development, and manufacture of acoustic components. In addition, the company is involved in acquisition, holding, managing, administering, coordinating, controlling, and disposing of investments; development and production of cable harnesses and wiring systems; design, development, manufacture, and sale of automobile and household related components, as well as provision of related aftersales services; technology consulting and sale of self-produced products; and manufacture of electronic components, auxiliary equipment, and motor vehicle parts. The company offers its products under the Belkin, Wemo, and Phyn brands. The company was formerly known as New Wing International Holdings Limited and changed its name to FIT Hon Teng Limited in June 2013. The company was founded in 1981 and is headquartered in New Taipei City, Taiwan. FIT Hon Teng Limited is a subsidiary of Foxconn (Far East) Limited.