Critical Contrast: OmniTek Engineering (OMTK) versus Dorman Products (DORM)

OmniTek Engineering (OTCMKTS:OMTK) and Dorman Products (NASDAQ:DORM) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for OmniTek Engineering and Dorman Products, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OmniTek Engineering 0 0 0 0 N/A
Dorman Products 0 4 0 1 2.40

Dorman Products has a consensus target price of $55.25, indicating a potential downside of 22.53%. Given Dorman Products’ higher possible upside, analysts clearly believe Dorman Products is more favorable than OmniTek Engineering.

Profitability

This table compares OmniTek Engineering and Dorman Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OmniTek Engineering -64.06% -151.59% -47.50%
Dorman Products 12.42% 19.13% 16.04%

Volatility and Risk

OmniTek Engineering has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Dorman Products has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Earnings & Valuation

This table compares OmniTek Engineering and Dorman Products’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OmniTek Engineering $1.07 million 3.44 -$1.03 million N/A N/A
Dorman Products $903.22 million 2.62 $106.59 million $3.37 21.16

Dorman Products has higher revenue and earnings than OmniTek Engineering.

Institutional and Insider Ownership

0.0% of OmniTek Engineering shares are held by institutional investors. Comparatively, 78.6% of Dorman Products shares are held by institutional investors. 54.0% of OmniTek Engineering shares are held by insiders. Comparatively, 11.9% of Dorman Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Dorman Products beats OmniTek Engineering on 8 of the 11 factors compared between the two stocks.

About OmniTek Engineering

Omnitek Engineering Corp. engages in the development and sale of proprietary diesel-to-natural gas engine conversion systems and complementary products, including new natural gas engines. Its product application includes stationary applications, global transportation industry, which includes light commercial vehicles, minibuses, heavy-duty-trucks, municipal buses, as well as rail and marine applications. The company was founded on May 2001 and is headquartered in Vista, CA.

About Dorman Products

Dorman Products, Inc. supplies automotive replacement parts, automotive hardware, and brake products to the automotive aftermarket and mass merchandise markets in the United States, Canada, Mexico, Europe, the Middle East, and Australia. It offers original equipment dealer products, such as intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, and complex electronics modules; fluid reservoirs, variable valve timing components, complex electronics, and integrated door lock actuators; and fasteners, including oil drain plugs, wheel bolts, and wheel lug nuts. The company also provides automotive replacement parts comprising door handles, keyless remotes and cases, and door hinge repairs; and heavy duty aftermarket parts for class 4-8 vehicles comprising lighting, cooling, engine management, and cab products. In addition, it offers solutions for rugged duty and fleet applications; replacement chassis part solutions; brake hardware products; electrical components; and application specific repair hardware products. The company provides its products under the OE Solutions, HELP!, HD Solutions, Premium Chassis, Premium XL, Premium RD, MAS, FirstStop, ConductTite, and AutoGrade brands through automotive aftermarket retailers, local independent parts wholesalers, national general merchandise chain retailers, mass merchants, salvage yards, and the parts distribution systems of parts manufacturers. Dorman Products, Inc. was founded in 1978 and is headquartered in Colmar, Pennsylvania.

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