Head-To-Head Comparison: Frequency Electronics (NASDAQ:FEIM) versus Astrotech (NASDAQ:ASTC)

Astrotech (NASDAQ:ASTC) and Frequency Electronics (NASDAQ:FEIM) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent ratings for Astrotech and Frequency Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
Frequency Electronics	0	1	1	1	3.00

Frequency Electronics has a consensus price target of $43.67, indicating a potential downside of 25.96%. Given Frequency Electronics’ stronger consensus rating and higher possible upside, analysts clearly believe Frequency Electronics is more favorable than Astrotech.

Volatility and Risk

Astrotech has a beta of 4.87, meaning that its stock price is 387% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

24.4% of Astrotech shares are owned by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are owned by institutional investors. 16.8% of Astrotech shares are owned by insiders. Comparatively, 28.0% of Frequency Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Astrotech and Frequency Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,397.82%	-81.85%	-65.46%
Frequency Electronics	-1.43%	-1.56%	-0.98%

Earnings & Valuation

This table compares Astrotech and Frequency Electronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	13.99	-$13.85 million	($8.41)	-0.83
Frequency Electronics	$63.23 million	9.21	-$900,000.00	($0.09)	-655.33

Frequency Electronics has higher revenue and earnings than Astrotech. Frequency Electronics is trading at a lower price-to-earnings ratio than Astrotech, indicating that it is currently the more affordable of the two stocks.

Summary

Frequency Electronics beats Astrotech on 12 of the 15 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.