In the ever-evolving technology landscape, Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) stand out as key players in their respective niches. Both companies operate within the broader technology sector, focusing on automation and data capture solutions, yet they approach innovation from different angles. Zebra specializes in enterprise asset intelligence, while Cognex excels in machine vision systems. This article will delve into their strategies, strengths, and market positions to help you determine which company might be the more compelling investment opportunity.
Table of contents
Company Overview
Zebra Technologies Corporation Overview
Zebra Technologies Corporation (ZBRA) is a leader in enterprise asset intelligence solutions, providing a range of automatic identification and data capture products. Founded in 1969 and based in Lincolnshire, Illinois, Zebra operates in two primary segments: Asset Intelligence & Tracking and Enterprise Visibility & Mobility. Its extensive product portfolio includes label printers, RFID systems, barcode scanners, and mobile computing devices, which are widely utilized across various industries, including retail, healthcare, and logistics. The company aims to enhance operational efficiency and accuracy through real-time data and insights, positioning itself as a critical partner in technology-driven supply chains.
Cognex Corporation Overview
Cognex Corporation (CGNX), established in 1981 and headquartered in Natick, Massachusetts, specializes in machine vision technology that automates manufacturing and distribution processes. The company’s offerings include advanced vision systems, image-based barcode readers, and software solutions that improve the precision of manufacturing operations. Cognex serves diverse sectors such as consumer electronics, automotive, and pharmaceuticals, leveraging innovative technology to enhance productivity and quality control. Its mission is to empower industries with visual intelligence, making it a key player in the automation landscape.
Key Similarities and Differences
Both Zebra Technologies and Cognex operate within the technology sector, focusing on automation and efficiency enhancements for various industries. However, while Zebra emphasizes enterprise visibility and asset tracking through a broad range of data capture solutions, Cognex focuses specifically on machine vision and inspection technologies. This distinction highlights their differing approaches to automation, with Zebra targeting overall asset management and Cognex honing in on visual analysis within manufacturing processes.
Income Statement Comparison
The following table compares the income statements of Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) for the most recent fiscal year, providing key insights into their financial performance.
| Metric | ZBRA | CGNX |
|---|---|---|
| Revenue | 4.98B | 914.52M |
| EBITDA | 937M | 147.75M |
| EBIT | 765M | 115.07M |
| Net Income | 528M | 106.17M |
| EPS | 10.25 | 0.62 |
Interpretation of Income Statement
In the most recent fiscal year, Zebra Technologies reported a revenue increase to 4.98B, up from 4.58B the previous year, reflecting a steady growth trend. Their net income also significantly rose to 528M, indicating improved profitability. In contrast, Cognex experienced slight revenue growth to 914.52M, but its net income decreased from 215.53M to 106.17M, suggesting challenges in maintaining profitability. While ZBRA improved its margins, CGNX’s performance reflects tightening margins and potential operational issues that investors should monitor closely.
Financial Ratios Comparison
Below is a comparative analysis of key financial metrics for Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX), reflective of their most recent performance.
| Metric | ZBRA | CGNX |
|---|---|---|
| ROE | 14.72% | 6.99% |
| ROIC | 9.67% | 5.05% |
| P/E | 37.67 | 57.90 |
| P/B | 5.55 | 4.05 |
| Current Ratio | 1.43 | 3.62 |
| Quick Ratio | 1.03 | 2.69 |
| D/E | 0.66 | 0.05 |
| Debt-to-Assets | 29.64% | 3.52% |
| Interest Coverage | 5.75 | N/A |
| Asset Turnover | 0.63 | 0.46 |
| Fixed Asset Turnover | 10.55 | 5.52 |
| Payout Ratio | 0 | 49.29% |
| Dividend Yield | 0% | 0.85% |
Interpretation of Financial Ratios
Zebra Technologies exhibits a strong return on equity (ROE) and return on invested capital (ROIC), indicating efficient use of equity and capital. However, its higher debt-to-equity ratio signals potential leverage risks compared to Cognex, which maintains a conservative capital structure with minimal debt. Cognex’s higher current and quick ratios suggest better short-term liquidity. The high P/E ratio for both companies may indicate overvaluation, especially for Cognex. Overall, while ZBRA shows robust operational efficiency, its debt levels warrant careful monitoring.
Dividend and Shareholder Returns
Zebra Technologies (ZBRA) does not pay dividends, reflecting a strategy focused on reinvesting for growth rather than distributing profits. Despite this, it engages in share buybacks, which can enhance shareholder value by reducing share dilution. Cognex Corporation (CGNX), on the other hand, pays a modest dividend with a payout ratio of approximately 43%. While this provides immediate returns, its high growth phase suggests that the focus on R&D might align better with long-term shareholder value creation. Ultimately, both strategies have merit, but investors should assess their risk appetite and investment horizon accordingly.
Strategic Positioning
Zebra Technologies (ZBRA) holds a strong market position in the enterprise asset intelligence sector, with a market cap of approximately $11.7B. It faces competitive pressure primarily from Cognex Corporation (CGNX), valued at around $6B, which specializes in machine vision solutions. Both companies are experiencing technological disruption; ZBRA is leveraging AI in asset tracking, while CGNX advances in deep learning for manufacturing automation. The competition is intensifying, necessitating ongoing innovation and strategic agility.
Stock Comparison
Over the past year, both Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) have experienced significant price movements, contributing to a dynamic trading environment. The following chart illustrates their respective stock price trends and fluctuations.
Trend Analysis
Zebra Technologies Corporation (ZBRA) has seen a price change of -15.51% over the past year, indicating a bearish trend. The stock demonstrated deceleration in its price movement, with notable highs reaching 414.61 and lows at 223.49. Recent data shows a more pronounced decline of -26.41% since September 2025, with a standard deviation of 28.64, further emphasizing the volatility in its price behavior.
Cognex Corporation (CGNX) also reflects a bearish trend, with a year-over-year price change of -13.51%. Similar to ZBRA, CGNX is experiencing deceleration, with highs of 50.98 and lows of 23.77. During the recent period from September 2025 to November 2025, the decline was -19.67%, accompanied by a standard deviation of 3.9.
Both companies exhibit a trend of increasing trading volume, yet the bearish price movements warrant cautious consideration for potential investors.
Analyst Opinions
Recent analyst recommendations for Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) suggest a consensus rating of “Buy” for both companies. Analysts have given ZBRA a rating of B, highlighting strong return on equity and assets but noting some concerns regarding its price-to-earnings ratio. Similarly, CGNX has also received a B rating, praised for its robust asset returns but criticized for a lower score in price-to-earnings. Overall, I see these stocks as promising additions to a diversified portfolio, balancing growth potential with the inherent risks of the tech sector.
Stock Grades
In this section, I present the latest grades from reliable grading companies for Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX).
Zebra Technologies Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | maintain | Hold | 2025-10-29 |
| Barclays | maintain | Overweight | 2025-10-29 |
| Citigroup | maintain | Neutral | 2025-10-29 |
| Citigroup | maintain | Neutral | 2025-10-09 |
| Truist Securities | maintain | Hold | 2025-10-08 |
| Truist Securities | maintain | Hold | 2025-08-06 |
| Needham | maintain | Buy | 2025-08-06 |
| Morgan Stanley | maintain | Equal Weight | 2025-08-06 |
| Barclays | maintain | Equal Weight | 2025-08-05 |
| Baird | maintain | Outperform | 2025-07-14 |
Cognex Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | maintain | Neutral | 2025-11-03 |
| Needham | maintain | Buy | 2025-10-31 |
| Barclays | maintain | Overweight | 2025-10-31 |
| Truist Securities | maintain | Hold | 2025-10-08 |
| Goldman Sachs | maintain | Sell | 2025-09-16 |
| DA Davidson | maintain | Neutral | 2025-08-04 |
| Keybanc | upgrade | Overweight | 2025-08-01 |
| UBS | maintain | Buy | 2025-08-01 |
| Needham | maintain | Buy | 2025-07-31 |
| Citigroup | maintain | Neutral | 2025-07-14 |
Overall, the grades for both ZBRA and CGNX show a trend of stability, with several maintain actions indicating that analysts are cautious yet optimistic about the companies’ performances. Notably, CGNX has seen an upgrade to Overweight from Keybanc, which could suggest positive future prospects.
Target Prices
Currently, reliable target price data is available for both Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Zebra Technologies Corporation | 360 | 331 | 345.5 |
| Cognex Corporation | 58 | 38 | 48.67 |
The target consensus for Zebra Technologies is significantly higher than its current stock price of 230.93, suggesting positive analyst sentiment. Similarly, Cognex Corporation’s consensus target of 48.67 reflects a potential upside compared to its current price of 36.1.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of two technology companies, Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX), based on recent data.
| Criterion | Zebra Technologies (ZBRA) | Cognex Corporation (CGNX) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Strong (Net Margin: 10.6%) | Very Strong (Net Margin: 13.5%) |
| Innovation | High | Very High |
| Global presence | Strong | Moderate |
| Market Share | Moderate | High |
| Debt Level | Moderate (Debt/Equity: 0.66) | Very Low (Debt/Equity: 0.05) |
Key takeaways indicate that both companies demonstrate strong profitability and innovation, with Cognex showing superior performance in debt management and market share. Zebra, while strong, faces challenges in diversification and global presence.
Risk Analysis
The following table outlines the key risks associated with Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) based on the most recent data.
| Metric | ZBRA | CGNX |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Low |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant market risk, especially due to fluctuations in technology demand and competition. Regulatory risks are more pronounced for ZBRA, while CGNX enjoys a more stable environment.
Which one to choose?
In comparing Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX), both companies exhibit strong fundamentals, with ZBRA showing a slight edge in profit margins and returns on assets. ZBRA has a net profit margin of 10.6% and a return on equity of 14.7%, while CGNX has a net profit margin of 11.6% and a return on equity of 7.0%. Despite these metrics, ZBRA’s stock has displayed a bearish trend with a recent price decline of 26.41%, while CGNX has seen a 19.67% drop. Analyst ratings for both companies stand at a B, indicating solid but cautious outlooks.
Investors seeking growth may lean toward CGNX due to its higher profitability ratios, while those prioritizing stability might prefer ZBRA’s more favorable operational margins. Both companies face risks related to market dependence and competitive pressures.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Zebra Technologies Corporation and Cognex Corporation to enhance your investment decisions:
