Head-To-Head Review: Eltek (ELTK) & CTS (CTS)

Eltek (NASDAQ:ELTK) and CTS (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 dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

3.9% of Eltek shares are held by institutional investors. Comparatively, 93.5% of CTS shares are held by institutional investors. 1.9% of CTS shares are held by 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.



Analyst Ratings

This is a breakdown of recent recommendations for Eltek and CTS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eltek 0 0 0 0 N/A
CTS 0 0 0 0 N/A

Risk and Volatility

Eltek has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, CTS has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Earnings & Valuation

This table compares Eltek and CTS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eltek $32.75 million 0.16 -$3.77 million N/A N/A
CTS $422.99 million 2.16 $14.44 million $1.23 22.41

CTS has higher revenue and earnings than Eltek.

Profitability

This table compares Eltek and CTS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eltek -7.51% -112.67% -11.99%
CTS 3.33% 14.11% 9.31%

Dividends

CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Eltek does not pay a dividend. CTS pays out 13.0% of its earnings in the form of a dividend.

Summary

CTS beats Eltek on 10 of the 11 factors compared between the two stocks.

About Eltek

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

About CTS

CTS Corp is a designer and manufacturer of electronic components, actuators and sensors and a provider of services to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. The company manufacture products in North America, Europe and Asia. CTS was founded in 1896 and is headquartered in Lisle, IL.

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