Head-To-Head Contrast: Key Tronic (NASDAQ:KTCC) and ESS Tech (NYSE:GWH)

ESS Tech (NYSE:GWH) and Key Tronic (NASDAQ:KTCC) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Profitability

This table compares ESS Tech and Key Tronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-2,067.81%	-215.91%	-103.16%
Key Tronic	-0.90%	-1.97%	-0.70%

Earnings & Valuation

This table compares ESS Tech and Key Tronic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$6.30 million	3.02	-$86.22 million	($7.17)	-0.22
Key Tronic	$559.40 million	0.06	-$2.79 million	($0.42)	-7.12

Key Tronic has higher revenue and earnings than ESS Tech. Key Tronic is trading at a lower price-to-earnings ratio than ESS Tech, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.8% of ESS Tech shares are held by institutional investors. Comparatively, 40.7% of Key Tronic shares are held by institutional investors. 2.3% of ESS Tech shares are held by insiders. Comparatively, 6.1% of Key Tronic 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.

Volatility and Risk

ESS Tech has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ESS Tech and Key Tronic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	2	7	0	0	1.78
Key Tronic	0	0	0	0	0.00

ESS Tech currently has a consensus price target of $8.92, indicating a potential upside of 467.94%. Given ESS Tech’s stronger consensus rating and higher probable upside, research analysts clearly believe ESS Tech is more favorable than Key Tronic.

Summary

Key Tronic beats ESS Tech on 7 of the 13 factors compared between the two stocks.

About ESS Tech

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.