Nortech Systems (NASDAQ:NSYS) versus Dais (OTCMKTS:DLYT) Critical Analysis

Dais (OTCMKTS:DLYT) and Nortech Systems (NASDAQ:NSYS) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares Dais and Nortech Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dais	$1.13 million	0.00	-$4.45 million	($0.36)	N/A
Nortech Systems	$128.13 million	0.15	-$1.29 million	($0.95)	-7.47

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

Volatility & Risk

Dais has a beta of 4.44, indicating that its share price is 344% more volatile than the S&P 500. Comparatively, Nortech Systems has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Profitability

This table compares Dais and Nortech Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dais	N/A	N/A	N/A
Nortech Systems	-2.25%	-7.93%	-3.56%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Dais and Nortech Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dais	0	0	0	0	0.00
Nortech Systems	1	0	0	0	1.00

Given Dais’ higher possible upside, equities analysts clearly believe Dais is more favorable than Nortech Systems.

Insider and Institutional Ownership

3.1% of Nortech Systems shares are owned by institutional investors. 22.3% of Dais shares are owned by insiders. Comparatively, 11.0% of Nortech Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Dais beats Nortech Systems on 7 of the 11 factors compared between the two stocks.

About Dais

Dais Corporation operates as a proprietary and nanotechnology polymer materials company. The company offers Aqualyte, a nanomaterial platform made from commercially available polymer resin and industrial grade solvents, which are mixed using a proprietary process with traditional industrial equipment; and ConsERV, a fixed plate energy recovery ventilator that is useful in meeting building indoor fresh air requirements while saving energy and lowering emissions for various forms of heating, ventilation, and air conditioning equipment. It also provides NanoClear, a water clean-up process useful in the creation of potable water from contaminated water, including salt, brackish and wastewater; NanoAir; and NanoCap, an energy storage application. The company also licenses its products. The company was formerly known as Dais Analytic Corporation Inc. and changed its name to Dais Corporation in February 2019. Dais Corporation was incorporated in 1993 and is headquartered in Odessa, Florida.

About Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.