CTS (NYSE:CTS – Get Free Report) and TT Electronics (OTCMKTS:TTGPF – Get Free Report) 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 profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and target prices for CTS and TT Electronics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CTS | 0 | 1 | 0 | 0 | 2.00 |
| TT Electronics | 0 | 2 | 0 | 0 | 2.00 |
Valuation and Earnings
This table compares CTS and TT Electronics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CTS | $515.77 million | 2.50 | $58.11 million | $1.97 | 22.58 |
| TT Electronics | $665.93 million | 0.53 | -$68.24 million | N/A | N/A |
CTS has higher earnings, but lower revenue than TT Electronics.
Risk and Volatility
CTS has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, TT Electronics has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Insider & Institutional Ownership
96.9% of CTS shares are held by institutional investors. 1.6% of CTS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares CTS and TT Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CTS | 11.14% | 11.92% | 8.31% |
| TT Electronics | N/A | N/A | N/A |
Summary
CTS beats TT Electronics on 8 of the 9 factors compared between the two stocks.
About CTS
CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.
About TT Electronics
TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.
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