Financial Survey: CPS Technologies (NASDAQ:CPSH) and Eltek (NASDAQ:ELTK)

Eltek (NASDAQ:ELTKGet Free Report) and CPS Technologies (NASDAQ:CPSHGet Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Valuation and Earnings

This table compares Eltek and CPS Technologies”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eltek $49.31 million 1.16 $4.22 million $0.17 50.00
CPS Technologies $30.32 million 2.03 -$3.13 million ($0.04) -85.50

Eltek has higher revenue and earnings than CPS Technologies. CPS Technologies is trading at a lower price-to-earnings ratio than Eltek, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eltek and CPS Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eltek 6.26% 7.40% 5.08%
CPS Technologies -1.94% -3.99% -3.07%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Eltek and CPS Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eltek 0 1 0 0 2.00
CPS Technologies 1 1 1 0 2.00

CPS Technologies has a consensus price target of $6.00, indicating a potential upside of 75.44%. Given CPS Technologies’ higher probable upside, analysts clearly believe CPS Technologies is more favorable than Eltek.

Institutional and Insider Ownership

64.6% of Eltek shares are held by institutional investors. Comparatively, 11.2% of CPS Technologies shares are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Comparatively, 15.6% of CPS Technologies shares are held by company 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.

Risk & Volatility

Eltek has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Summary

Eltek beats CPS Technologies on 9 of the 13 factors compared between the two stocks.

About Eltek

(Get Free Report)

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

About CPS Technologies

(Get Free Report)

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.

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