Mechanical Technology (OTCMKTS:MKTY) and Geospace Technologies (NASDAQ:GEOS) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Risk & Volatility

Mechanical Technology has a beta of -0.49, indicating that its share price is 149% less volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

62.7% of Geospace Technologies shares are held by institutional investors. 45.4% of Mechanical Technology shares are held by insiders. Comparatively, 3.9% of Geospace Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Mechanical Technology and Geospace Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mechanical Technology 14.27% 21.53% 17.23%
Geospace Technologies -25.36% -10.64% -9.88%

Earnings & Valuation

This table compares Mechanical Technology and Geospace Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mechanical Technology $7.06 million 1.14 $580,000.00 N/A N/A
Geospace Technologies $75.75 million 2.63 -$19.21 million N/A N/A

Mechanical Technology has higher earnings, but lower revenue than Geospace Technologies.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Mechanical Technology and Geospace Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mechanical Technology 0 0 0 0 N/A
Geospace Technologies 0 0 1 0 3.00

Geospace Technologies has a consensus target price of $17.25, suggesting a potential upside of 18.15%. Given Geospace Technologies’ higher probable upside, analysts clearly believe Geospace Technologies is more favorable than Mechanical Technology.

Summary

Geospace Technologies beats Mechanical Technology on 6 of the 11 factors compared between the two stocks.

About Mechanical Technology

Mechanical Technology, Incorporated, through its subsidiary, MTI Instruments, Inc., designs, manufactures, and markets precision linear displacement solutions, vibration measurement and system balancing solutions, precision tensile measurement systems, and wafer inspection tools worldwide. It offers electronic gauging instruments for position, displacement, and vibration applications in the industrial manufacturing/production markets, as well as the research, design, and process development market. The company also provides engine balancing and vibration analysis systems for military and commercial aircraft; metrology tools for semiconductor and solar wafer characterization; and tensile stage systems for materials testing and precision linear displacement gauges for use in academic and industrial research and development settings. It sells its precision automated manufacturing, and research and development sectors through direct sales and representatives in the Americas; and through distributors and agents in Europe and Asia, as well as axial turbo machinery directly to end users. The company serves electronics, aircraft, aerospace, automotive, semiconductor, and research industries. Mechanical Technology, Incorporated was founded in 1961 and is headquartered in Albany, New York.

About Geospace Technologies

Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through three segments: Oil and Gas Markets, Adjacent Markets, and Emerging Markets. The Oil and Gas Markets segment offers wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products, such as geophones, hydrophones, leader wires, connectors, cables, marine streamer retrieval and steering devices, and various other seismic products. The Adjacent Markets segment provides industrial products, including water meter products, imaging equipment, and offshore cables, as well as seismic sensors for vibration monitoring and geotechnical applications, such as mine safety and earthquake detection applications; and electronic pre-press products that employ direct thermal imaging and digital inkjet printing technologies targeted at the commercial graphic, industrial graphic, textile, and flexographic printing industries. The Emerging Markets segment designs and sells products used for border and perimeter security surveillance, cross-border tunneling detection, and other products targeted at movement monitoring, intrusion detection, and situational awareness. This segment serves customers that include various agencies of the United States government including the Department of Defense, Department of Energy, Department of Homeland Security, and other agencies. It operates in Asia, Canada, Europe, the Middle East, the United States, and internationally. Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas.

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