NVE Corporation (NVEC) versus CTS Corporation (CTS) Head to Head Comparison
NVE Corporation (NASDAQ: NVEC) and CTS Corporation (NYSE:CTS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
This table compares NVE Corporation and CTS Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NVE Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 5.5%. CTS Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. NVE Corporation pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CTS Corporation pays out 17.6% of its earnings in the form of a dividend. NVE Corporation has raised its dividend for 3 consecutive years. NVE Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
72.3% of NVE Corporation shares are owned by institutional investors. Comparatively, 91.9% of CTS Corporation shares are owned by institutional investors. 2.3% of NVE Corporation shares are owned by insiders. Comparatively, 1.7% of CTS Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
NVE Corporation has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, CTS Corporation has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Valuation and Earnings
This table compares NVE Corporation and CTS Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NVE Corporation||$29.23 million||12.06||$18.97 million||$2.70||26.97|
|CTS Corporation||$407.12 million||1.76||$76.03 million||$0.91||23.90|
CTS Corporation has higher revenue and earnings than NVE Corporation. CTS Corporation is trading at a lower price-to-earnings ratio than NVE Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for NVE Corporation and CTS Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVE Corporation presently has a consensus price target of $79.00, indicating a potential upside of 8.49%. CTS Corporation has a consensus price target of $24.50, indicating a potential upside of 12.64%. Given CTS Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe CTS Corporation is more favorable than NVE Corporation.
NVE Corporation beats CTS Corporation on 9 of the 17 factors compared between the two stocks.
NVE Corporation Company Profile
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store and transmit information. The Company manufactures spintronic products, including sensors and couplers that are used to acquire and transmit data. The Company has also licensed its spintronic magnetoresistive random access memory technology (MRAM). Its parts are found in industrial, scientific, and medical applications. The Company’s products include sensors, couplers and MRAM products. Its sensor products detect the strength or gradient of magnetic fields and are used to determine position or speed. Its spintronic couplers combine a GMR sensor element and an IsoLoop integrated microscopic coil. MRAM uses spintronics to store data. It combines the speed of static random-access memory (SRAM), the density of dynamic random-access memory (DRAM) and the nonvolatility of flash memory. Data is stored in the spin of the electrons in thin metal alloy films.
CTS Corporation Company Profile
CTS Corporation is a manufacturer of sensors, electronic components and actuators. The Company designs, manufactures and sells a line of sensors, electronic components and actuators primarily to original equipment manufacturers (OEMs) for the transportation, industrial, medical, information technology, defense and aerospace, and communications markets. It operates manufacturing facilities in North America, Asia and Europe. Its products perform specific electronic functions for a given product family and are intended for use in customer assemblies. The Company’s products consist principally of sensors and actuators used in passenger or commercial vehicles; electronic components used in communications infrastructure, information technology and other high-speed applications; switches and potentiometers supplied to multiple markets, and fabricated piezoelectric materials and substrates used primarily in medical, industrial, defense and aerospace, and information technology markets.
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