Twin Disc (NASDAQ:TWIN) and Omnitek Engineering (OTCMKTS:OMTK) Critical Comparison

Twin Disc (NASDAQ:TWINGet Free Report) and Omnitek Engineering (OTCMKTS:OMTKGet Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Profitability

This table compares Twin Disc and Omnitek Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twin Disc -0.56% -1.22% -0.57%
Omnitek Engineering 7.23% -8.00% 10.57%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Twin Disc and Omnitek Engineering, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twin Disc 1 0 1 0 2.00
Omnitek Engineering 0 0 0 0 0.00

Twin Disc currently has a consensus target price of $12.00, suggesting a potential downside of 26.92%. Given Twin Disc’s stronger consensus rating and higher possible upside, analysts plainly believe Twin Disc is more favorable than Omnitek Engineering.

Valuation and Earnings

This table compares Twin Disc and Omnitek Engineering”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twin Disc $340.74 million 0.69 -$1.89 million ($0.14) -117.29
Omnitek Engineering $1.02 million 0.32 -$170,000.00 $0.01 1.49

Omnitek Engineering has lower revenue, but higher earnings than Twin Disc. Twin Disc is trading at a lower price-to-earnings ratio than Omnitek Engineering, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.3% of Twin Disc shares are held by institutional investors. 22.1% of Twin Disc shares are held by insiders. Comparatively, 45.5% of Omnitek Engineering shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Twin Disc has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Omnitek Engineering has a beta of -0.2, meaning that its share price is 120% less volatile than the S&P 500.

Summary

Twin Disc beats Omnitek Engineering on 8 of the 14 factors compared between the two stocks.

About Twin Disc

(Get Free Report)

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.

About Omnitek Engineering

(Get Free Report)

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

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