CTS (NYSE:CTS – Get Free Report) and MultiSensor AI (NASDAQ:MSAI – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
96.9% of CTS shares are held by institutional investors. Comparatively, 82.3% of MultiSensor AI shares are held by institutional investors. 2.4% of CTS shares are held by company insiders. Comparatively, 50.8% of MultiSensor AI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares CTS and MultiSensor AI”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CTS | $541.32 million | 3.05 | $65.32 million | $2.53 | 22.91 |
| MultiSensor AI | $5.55 million | 1.19 | -$11.71 million | ($5.62) | -0.53 |
CTS has higher revenue and earnings than MultiSensor AI. MultiSensor AI is trading at a lower price-to-earnings ratio than CTS, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CTS has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, MultiSensor AI has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500.
Profitability
This table compares CTS and MultiSensor AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CTS | 12.94% | 14.05% | 10.10% |
| MultiSensor AI | -141.70% | -36.08% | -31.31% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for CTS and MultiSensor AI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CTS | 0 | 1 | 3 | 0 | 2.75 |
| MultiSensor AI | 1 | 1 | 0 | 0 | 1.50 |
CTS currently has a consensus target price of $73.50, indicating a potential upside of 26.82%. Given CTS’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CTS is more favorable than MultiSensor AI.
Summary
CTS beats MultiSensor AI on 13 of the 14 factors compared between the two stocks.
About CTS
CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.
About MultiSensor AI
MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.
Receive News & Ratings for CTS Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CTS and related companies with MarketBeat.com's FREE daily email newsletter.
