Eltek (NASDAQ:ELTK – Get Free Report) and TDK (OTCMKTS:TTDKY – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
64.6% of Eltek shares are owned by institutional investors. 72.0% of Eltek shares are owned by insiders. Comparatively, 0.0% of TDK shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Eltek and TDK’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eltek | 1.59% | 1.85% | 1.29% |
| TDK | 7.85% | 9.83% | 4.86% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eltek | 0 | 1 | 0 | 0 | 2.00 |
| TDK | 0 | 0 | 0 | 1 | 4.00 |
Risk & Volatility
Eltek has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, TDK has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Dividends
Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 2.2%. TDK pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Eltek pays out 158.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TDK pays out 18.2% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Eltek and TDK”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eltek | $51.79 million | 1.11 | $830,000.00 | $0.12 | 71.27 |
| TDK | $14.48 billion | 1.78 | $1.10 billion | $0.66 | 20.06 |
TDK has higher revenue and earnings than Eltek. TDK is trading at a lower price-to-earnings ratio than Eltek, indicating that it is currently the more affordable of the two stocks.
Summary
TDK beats Eltek on 11 of the 15 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 TDK
TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.
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