Bel Fuse (NASDAQ:BELFA – Get Free Report) and Key Tronic (NASDAQ:KTCC – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Volatility and Risk
Bel Fuse has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Institutional & Insider Ownership
6.0% of Bel Fuse shares are owned by institutional investors. Comparatively, 40.7% of Key Tronic shares are owned by institutional investors. 5.5% of Bel Fuse shares are owned by company insiders. Comparatively, 7.9% of Key Tronic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bel Fuse | $534.79 million | 3.62 | $40.96 million | $4.93 | 31.01 |
| Key Tronic | $435.06 million | 0.07 | -$8.32 million | ($1.09) | -2.39 |
Bel Fuse has higher revenue and earnings than Key Tronic. Key Tronic is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bel Fuse and Key Tronic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bel Fuse | 10.04% | 21.18% | 8.77% |
| Key Tronic | -2.69% | -8.43% | -3.06% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Bel Fuse and Key Tronic, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bel Fuse | 0 | 1 | 1 | 1 | 3.00 |
| Key Tronic | 1 | 0 | 0 | 0 | 1.00 |
Bel Fuse currently has a consensus target price of $115.00, suggesting a potential downside of 24.79%. Given Bel Fuse’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bel Fuse is more favorable than Key Tronic.
Summary
Bel Fuse beats Key Tronic on 13 of the 15 factors compared between the two stocks.
About Bel Fuse
Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.
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.
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