Critical Review: Eltek (NASDAQ:ELTK) and Gauzy (NASDAQ:GAUZ)

Eltek (NASDAQ:ELTK) and Gauzy (NASDAQ:GAUZ) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Profitability

This table compares Eltek and Gauzy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	-12.66%	-13.57%	-9.01%
Gauzy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Eltek and Gauzy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Gauzy	1	0	0	0	1.00

Volatility & Risk

Eltek has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Gauzy has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500.

Insider and Institutional Ownership

64.6% of Eltek shares are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Eltek and Gauzy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$51.79 million	1.03	$830,000.00	($0.91)	-8.70
Gauzy	$103.53 million	0.08	-$53.18 million	($2.05)	-0.18

Eltek has higher earnings, but lower revenue than Gauzy. Eltek is trading at a lower price-to-earnings ratio than Gauzy, indicating that it is currently the more affordable of the two stocks.

Summary

Eltek beats Gauzy on 6 of the 11 factors compared between the two stocks.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.