Critical Review: CPS Technologies (NASDAQ:CPSH) and ABCO Energy (OTCMKTS:ABCE)

ABCO Energy (OTCMKTS:ABCE) and CPS Technologies (NASDAQ:CPSH) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for ABCO Energy and CPS Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABCO Energy	0	0	0	0	0.00
CPS Technologies	1	1	1	0	2.00

CPS Technologies has a consensus price target of $6.00, suggesting a potential upside of 60.43%. Given CPS Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe CPS Technologies is more favorable than ABCO Energy.

Valuation and Earnings

This table compares ABCO Energy and CPS Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABCO Energy	N/A	N/A	N/A	N/A	N/A
CPS Technologies	$32.60 million	2.06	$420,000.00	$0.03	124.67

CPS Technologies has higher revenue and earnings than ABCO Energy.

Institutional & Insider Ownership

11.2% of CPS Technologies shares are owned by institutional investors. 0.1% of ABCO Energy shares are owned by company insiders. Comparatively, 15.4% of CPS Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares ABCO Energy and CPS Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABCO Energy	N/A	N/A	N/A
CPS Technologies	1.29%	2.43%	1.90%

Summary

CPS Technologies beats ABCO Energy on 9 of the 9 factors compared between the two stocks.

About ABCO Energy

ABCO Energy, Inc., together with its subsidiaries, operates as an electrical product and services supplier in the United States. The company sells and installs solar photovoltaic electric systems that allow customers to produce power on their residence or business property. It also sells and installs energy efficient lighting products, solar powered streetlights, and lighting accessories to residential and commercial customers. In addition, the company offers solar leasing and long term financing programs to its customers, and other marketing and installation organizations. Further, the company provides operations and maintenance services to residential and commercial customers. The company was formerly known as ENYC and changed its name to ABCO Energy, Inc. in October 2011. ABCO Energy, Inc. was founded in 2004 and is based in Tucson, Arizona.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.