In the rapidly evolving world of technology, Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) stand out as innovators within the communication equipment and machine vision sectors, respectively. Both companies play pivotal roles in enhancing operational efficiency across various industries, including manufacturing and logistics. As I compare these two giants, I aim to highlight their strategies, market positions, and growth potential. Join me as we determine which company presents the most compelling opportunity for investors seeking to enhance their portfolios.
Table of contents
Company Overview
Zebra Technologies Overview
Zebra Technologies Corporation (ZBRA) specializes in enterprise asset intelligence solutions, focusing on automatic identification and data capture. Founded in 1969 and headquartered in Lincolnshire, Illinois, Zebra operates in two main segments: Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The company designs and manufactures a wide range of products, including printers for labels and wristbands, RFID solutions, barcode scanners, and rugged mobile computing devices. Serving diverse industries like retail, healthcare, and logistics, Zebra’s mission is to enhance visibility and operational efficiency through innovative technology. With a market cap of approximately $12.8B, Zebra remains a key player in the communication equipment sector.
Cognex Corporation Overview
Cognex Corporation (CGNX), established in 1981 and based in Natick, Massachusetts, is a leader in machine vision technology, providing products that automate manufacturing and distribution processes. With a wide array of offerings, including sophisticated vision sensors and image-based barcode readers, Cognex enables precise inspection, identification, and measurement of items during production. Their solutions cater to industries such as automotive, electronics, and pharmaceuticals, aiming to improve manufacturing efficiency and quality. With a market cap of around $6.4B, Cognex’s focus on automation positions it strongly in the hardware and equipment sector.
Key similarities and differences
Both Zebra Technologies and Cognex Corporation operate within the technology sector, focusing on solutions that enhance operational efficiencies. However, while Zebra emphasizes asset tracking and data capture primarily through printers and mobile devices, Cognex centers on machine vision systems for automation in manufacturing processes. This distinction highlights their unique approaches to technology and market positioning.
Income Statement Comparison
The following table provides a detailed comparison of the most recent income statements for Zebra Technologies Corporation and Cognex Corporation, highlighting key financial metrics.
| Metric | Zebra Technologies (ZBRA) | Cognex Corporation (CGNX) |
|---|---|---|
| Market Cap | 12.80B | 6.39B |
| Revenue | 4.98B | 0.91B |
| EBITDA | 0.94B | 0.15B |
| EBIT | 0.77B | 0.12B |
| Net Income | 0.53B | 0.11B |
| EPS | 10.25 | 0.62 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In analyzing the income statements of Zebra Technologies and Cognex Corporation, I notice that Zebra’s revenue grew from 4.58B in 2023 to 4.98B in 2024, indicating strong demand for its solutions. Meanwhile, Cognex experienced a modest increase from 0.84B to 0.91B in revenue, suggesting more stable growth. Zebra’s net income also improved significantly from 296M to 528M, reflecting enhanced operational efficiency and cost management, while Cognex’s net income rose slightly to 106M. Overall, Zebra shows a robust growth trajectory with improved margins, while Cognex’s steady performance suggests it maintains a strong position in its market segment.
Financial Ratios Comparison
The table below provides a comparative analysis of key financial ratios for Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) based on the most recent fiscal data.
| Metric | ZBRA | CGNX |
|---|---|---|
| ROE | 14.72% | 7.00% |
| 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
ZBRA exhibits stronger performance in ROE and ROIC, indicating better efficiency in generating profits from equity and invested capital. However, it has a higher P/E ratio, suggesting that investors may be paying more for each dollar of earnings compared to CGNX. ZBRA’s current and quick ratios indicate adequate liquidity, though CGNX demonstrates superior short-term financial health. ZBRA’s higher debt levels warrant caution, given its lower debt-to-assets ratio compared to CGNX, which has minimal leverage. Overall, both companies have unique strengths, but ZBRA may face higher risk due to its debt profile.
Dividend and Shareholder Returns
Zebra Technologies (ZBRA) does not pay dividends, focusing instead on reinvestment and growth. Its dividend payout ratio is 0%, and it engages in share buybacks to return value to shareholders. Conversely, Cognex Corporation (CGNX) pays a modest dividend with a payout ratio of about 43%, reflecting a balance between returning capital and funding growth initiatives. Both strategies can support long-term value creation, but ZBRA’s approach may carry higher growth potential while CGNX provides income stability.
Strategic Positioning
Zebra Technologies (ZBRA) holds a significant market share in the enterprise asset intelligence solutions sector, driven by its comprehensive range of identification and mobility products. With a market cap of approximately $12.8B, it faces competitive pressure from Cognex (CGNX), which specializes in machine vision systems and has a market cap of around $6.4B. Both companies are navigating technological disruptions, particularly in automation and data capture, necessitating continuous innovation to maintain their competitive edge.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) over the past year, highlighting key price dynamics and trading patterns.
Trend Analysis
Zebra Technologies Corporation (ZBRA)
- Over the past year, ZBRA has experienced a percentage change of +2%. This indicates a bullish trend, albeit with signs of deceleration. The stock has shown notable volatility, with a standard deviation of 47.04. The highest price recorded was 414.61, while the lowest was 223.49.
- However, in the recent period from September 14, 2025, to November 30, 2025, the stock has declined by 19.16%, indicating a bearish trend during this timeframe. The recent standard deviation was 27.27, suggesting moderate volatility.
Cognex Corporation (CGNX)
- Over the past year, CGNX has seen a percentage change of +0.66%, which also reflects a bullish trend with signs of deceleration. The volatility is lower than ZBRA, with a standard deviation of 5.91. The stock’s highest price was 50.98, while the lowest was 23.77.
- In the recent period from September 14, 2025, to November 30, 2025, CGNX faced a decline of 14.17%, indicating a bearish trend during this timeframe as well. The recent standard deviation was 3.98, reflecting lower volatility compared to ZBRA.
In summary, both stocks show bullish trends over the long term but have faced significant declines in the recent period, suggesting potential caution for investors considering positions in either company.
Analyst Opinions
Recent analyst recommendations for Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) have both received a rating of “B.” Analysts note ZBRA’s strong return on equity and assets, which contribute to its solid financial health. On the other hand, CGNX is viewed positively due to its robust asset returns, although it has a lower score on price-to-earnings metrics. Overall, the consensus for both companies leans towards a “buy” for the current year, indicating optimistic growth potential in their respective sectors.
Stock Grades
As we assess the current stock ratings for Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX), we find some interesting trends in the evaluations provided by reputable grading companies.
Zebra Technologies Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Hold | 2025-10-29 |
| Citigroup | Maintain | Neutral | 2025-10-29 |
| Barclays | Maintain | Overweight | 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 |
| Baird | Maintain | Neutral | 2025-10-31 |
| 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 |
| UBS | Maintain | Buy | 2025-08-01 |
| Keybanc | Upgrade | Overweight | 2025-08-01 |
| Baird | Maintain | Neutral | 2025-08-01 |
In summary, Zebra Technologies shows a mix of grades, with a notable consistent rating of “Hold” from several firms, while Cognex has a more diverse set of evaluations, including a recent upgrade to “Overweight” from Keybanc. Overall, both companies appear to have stable ratings, suggesting cautious optimism in the market.
Target Prices
The current target consensus reflects optimistic expectations from analysts for both Zebra Technologies and Cognex Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Zebra Technologies | 360 | 331 | 345.5 |
| Cognex Corporation | 58 | 38 | 48.67 |
For Zebra Technologies, the consensus target price of 345.5 suggests potential upside compared to its current price of 252.75. Similarly, Cognex’s target consensus of 48.67 indicates a favorable outlook relative to its current trading price of 38.1.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX) based on the most recent financial data.
| Criterion | Zebra Technologies (ZBRA) | Cognex Corporation (CGNX) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Strong (Net Margin: 10.6%) | Strong (Net Margin: 13.5%) |
| Innovation | High | Very High |
| Global presence | Strong | Moderate |
| Market Share | 5% | 3% |
| Debt level | Moderate (Debt/Equity: 0.66) | Very Low (Debt/Equity: 0.05) |
Key takeaways indicate that both companies exhibit strong profitability, with Zebra focusing on enterprise solutions and Cognex leading in machine vision technology. Cognex shows a significant innovation edge and lower debt levels, suggesting a more resilient financial position.
Risk Analysis
The following table outlines the key risks associated with Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX).
| Metric | Zebra Technologies (ZBRA) | Cognex Corporation (CGNX) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Low |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
In analyzing these risks, market risk appears most significant for both companies, especially given the volatile nature of technology stocks. Regulatory pressures, particularly in data and environmental sectors, could pose challenges for ZBRA, while CGNX may face less regulatory scrutiny.
Which one to choose?
When comparing Zebra Technologies Corporation (ZBRA) and Cognex Corporation (CGNX), both companies show solid fundamentals. ZBRA’s gross profit margin stands at 48.4%, while CGNX is higher at 68.4%. However, ZBRA has a more favorable price-to-earnings growth ratio (0.48) versus CGNX’s (negative). Analyst ratings for both companies are similar, with a “B” rating indicating stability. ZBRA’s market cap is approximately $19.9B, while CGNX is around $6.1B, suggesting that ZBRA might offer more robust growth potential.
For growth-focused investors, CGNX appears attractive due to its higher margins and lower debt levels. Conversely, those prioritizing stability may find ZBRA a more secure option given its solid historical performance and larger market presence. However, both face risks related to competition and market dependence.
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:
