CPS Technologies (NASDAQ:CPSH – Get Free Report) and PC Connection (NASDAQ:CNXN – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Valuation & Earnings
This table compares CPS Technologies and PC Connection”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CPS Technologies | $32.60 million | 2.28 | $420,000.00 | ($0.01) | -384.00 |
| PC Connection | $2.87 billion | 0.81 | $83.72 million | $3.78 | 24.44 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for CPS Technologies and PC Connection, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CPS Technologies | 1 | 1 | 1 | 0 | 2.00 |
| PC Connection | 0 | 1 | 1 | 0 | 2.50 |
CPS Technologies currently has a consensus price target of $6.00, suggesting a potential upside of 56.25%. Given CPS Technologies’ higher possible upside, research analysts clearly believe CPS Technologies is more favorable than PC Connection.
Institutional and Insider Ownership
11.2% of CPS Technologies shares are owned by institutional investors. Comparatively, 42.8% of PC Connection shares are owned by institutional investors. 13.2% of CPS Technologies shares are owned by company insiders. Comparatively, 56.6% of PC Connection shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares CPS Technologies and PC Connection’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CPS Technologies | -0.11% | -0.14% | -0.12% |
| PC Connection | 3.21% | 10.90% | 7.29% |
Risk & Volatility
CPS Technologies has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, PC Connection has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
Summary
PC Connection beats CPS Technologies on 10 of the 13 factors compared between the two stocks.
About CPS Technologies
CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.
About PC Connection
PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
Receive News & Ratings for CPS Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CPS Technologies and related companies with MarketBeat.com's FREE daily email newsletter.
