Eltek (NASDAQ:ELTK) and Alps Electric (OTCMKTS:APELY) Head-To-Head Review

Eltek (NASDAQ:ELTK) and Alps Electric (OTCMKTS:APELY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Dividends

Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 1.9%. Alps Electric pays an annual dividend of $0.61 per share and has a dividend yield of 2.5%. Eltek pays out 42.2% of its earnings in the form of a dividend. Alps Electric pays out 27.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alps Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

64.6% of Eltek shares are owned by institutional investors. Comparatively, 0.1% of Alps Electric shares are owned by institutional investors. 72.0% of Eltek shares are owned by company insiders. Comparatively, 10.4% of Alps Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Eltek and Alps Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	0	0	0	0	0.00
Alps Electric	1	0	0	0	1.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eltek	6.26%	7.40%	5.08%
Alps Electric	3.39%	1.81%	1.00%

Volatility & Risk

Eltek has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Alps Electric has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Valuation and Earnings

This table compares Eltek and Alps Electric”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$46.53 million	1.46	$4.22 million	$0.45	22.42
Alps Electric	$6.50 billion	0.39	$249.72 million	$2.20	11.14

Alps Electric has higher revenue and earnings than Eltek. Alps Electric is trading at a lower price-to-earnings ratio than Eltek, indicating that it is currently the more affordable of the two stocks.

Summary

Eltek beats Alps Electric on 8 of the 14 factors compared between the two stocks.

About Eltek

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

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.