Nortech Systems (NASDAQ:NSYS – Get Free Report) and nVent Electric (NYSE:NVT – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
3.0% of Nortech Systems shares are held by institutional investors. Comparatively, 90.1% of nVent Electric shares are held by institutional investors. 11.0% of Nortech Systems shares are held by insiders. Comparatively, 2.5% of nVent Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Nortech Systems and nVent Electric”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nortech Systems | $117.60 million | 0.22 | -$1.29 million | ($1.17) | -8.01 |
| nVent Electric | $3.01 billion | 6.02 | $331.80 million | $3.63 | 31.00 |
nVent Electric has higher revenue and earnings than Nortech Systems. Nortech Systems is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Nortech Systems has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
Profitability
This table compares Nortech Systems and nVent Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nortech Systems | -2.74% | -9.55% | -4.33% |
| nVent Electric | 16.83% | 14.29% | 7.42% |
Analyst Ratings
This is a breakdown of recent ratings for Nortech Systems and nVent Electric, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nortech Systems | 1 | 0 | 0 | 0 | 1.00 |
| nVent Electric | 0 | 1 | 7 | 1 | 3.00 |
nVent Electric has a consensus price target of $121.14, suggesting a potential upside of 7.67%. Given nVent Electric’s stronger consensus rating and higher probable upside, analysts plainly believe nVent Electric is more favorable than Nortech Systems.
Summary
nVent Electric beats Nortech Systems on 14 of the 15 factors compared between the two stocks.
About Nortech Systems
Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
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