Eltek (NASDAQ:ELTK) and Benchmark Electronics (NYSE:BHE) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Dividends

Benchmark Electronics pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Eltek does not pay a dividend. Benchmark Electronics pays out 37.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Eltek and Benchmark Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eltek 0 0 0 0 N/A
Benchmark Electronics 0 1 0 0 2.00

Benchmark Electronics has a consensus price target of $25.00, suggesting a potential upside of 10.82%. Given Benchmark Electronics’ higher probable upside, analysts clearly believe Benchmark Electronics is more favorable than Eltek.

Risk and Volatility

Eltek has a beta of -0.53, suggesting that its share price is 153% less volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares Eltek and Benchmark Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eltek -9.85% -112.37% -15.45%
Benchmark Electronics -3.14% 5.92% 3.66%

Valuation and Earnings

This table compares Eltek and Benchmark Electronics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eltek $32.75 million 0.20 -$3.77 million N/A N/A
Benchmark Electronics $2.47 billion 0.40 -$31.96 million $1.61 14.01

Eltek has higher earnings, but lower revenue than Benchmark Electronics.

Insider & Institutional Ownership

3.9% of Eltek shares are held by institutional investors. 0.6% of Benchmark Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Benchmark Electronics beats Eltek on 9 of the 12 factors compared between the two stocks.

Eltek Company Profile

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

Benchmark Electronics Company Profile

Benchmark Electronics, Inc. provides integrated electronic manufacturing services, engineering and design services, and precision machining services. The company provides services to original equipment manufacturers of industrial control equipment telecommunication equipment, computers and related products for business enterprises, medical devices, and testing and instrumentation products. Its services include comprehensive and integrated design and manufacturing services and solutions from initial product concept to volume production, including direct order fulfillment and aftermarket services. The company was founded by Cary T. Fu, Steven A. Barton and Donald E. Nigbor in 1979 and is headquartered in Angleton, TX.

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