Contrasting Eltek (ELTK) and Its Competitors

Eltek (NASDAQ:ELTK) is one of 376 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its rivals? We will compare Eltek to related businesses based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, dividends and valuation.

Volatility & Risk

Eltek has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Eltek’s rivals have a beta of -0.34, suggesting that their average stock price is 134% less volatile than the S&P 500.

Valuation and Earnings

This table compares Eltek and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Eltek	$48.48 million	$830,000.00	-6.63
Eltek Competitors	$116.09 billion	$174.60 million	4.88

Eltek’s rivals have higher revenue and earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Eltek and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	-12.66%	-13.57%	-9.01%
Eltek Competitors	-139.91%	-19.77%	-5.96%

Dividends

Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 3.2%. Eltek pays out -20.9% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 69.5% of their earnings in the form of a dividend. Eltek is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Eltek and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Eltek Competitors	2048	7630	10467	668	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 32.95%. Given Eltek’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Eltek has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

64.6% of Eltek shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Eltek rivals beat Eltek on 8 of the 15 factors compared.

Eltek Company Profile

Eltek Ltd. is an Israel-based manufacturer of high-end printed circuit boards (PCBs). The company produces rigid, flexible, and rigid-flexible boards, as well as multilayer, high-density interconnect (HDI), and radio-frequency circuit boards. Its products are designed for applications that require complex circuitry, high reliability, and specialized manufacturing capabilities. Eltek serves customers in industries including aerospace and defense, medical equipment, industrial systems, telecommunications, automotive, and other technology markets.