Head-To-Head Analysis: Eltek (NASDAQ:ELTK) versus CPS Technologies (NASDAQ:CPSH)

CPS Technologies (NASDAQ:CPSH) and Eltek (NASDAQ:ELTK) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

CPS Technologies has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for CPS Technologies and Eltek, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	1	1	1	0	2.00
Eltek	0	1	0	0	2.00

CPS Technologies presently has a consensus target price of $6.00, suggesting a potential upside of 90.48%. Given CPS Technologies’ higher probable upside, equities analysts plainly believe CPS Technologies is more favorable than Eltek.

Valuation & Earnings

This table compares CPS Technologies and Eltek”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$30.32 million	1.87	-$3.13 million	($0.04)	-78.75
Eltek	$49.31 million	1.16	$4.22 million	$0.17	49.88

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	-1.94%	-3.99%	-3.07%
Eltek	6.26%	7.40%	5.08%

Insider and Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 64.6% of Eltek shares are held by institutional investors. 15.6% of CPS Technologies shares are held by company insiders. Comparatively, 72.0% of Eltek shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Eltek beats CPS Technologies on 9 of the 13 factors compared between the two stocks.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.

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.