Head to Head Review: Hitek Global (NASDAQ:HKIT) and Cricut (NASDAQ:CRCT)

Hitek Global (NASDAQ:HKIT) and Cricut (NASDAQ:CRCT) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

1.2% of Hitek Global shares are owned by institutional investors. Comparatively, 19.6% of Cricut shares are owned by institutional investors. 18.6% of Cricut shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Hitek Global and Cricut, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitek Global	1	0	0	0	1.00
Cricut	3	1	0	0	1.25

Cricut has a consensus target price of $4.18, suggesting a potential downside of 11.74%. Given Cricut’s stronger consensus rating and higher probable upside, analysts plainly believe Cricut is more favorable than Hitek Global.

Volatility & Risk

Hitek Global has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Cricut has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hitek Global and Cricut”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitek Global	$2.90 million	7.99	-$900,000.00	N/A	N/A
Cricut	$714.49 million	1.40	$62.83 million	$0.38	12.47

Cricut has higher revenue and earnings than Hitek Global.

Profitability

This table compares Hitek Global and Cricut’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitek Global	N/A	N/A	N/A
Cricut	11.31%	19.91%	12.15%

Summary

Cricut beats Hitek Global on 9 of the 11 factors compared between the two stocks.

About Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.