Reviewing Omnitek Engineering (OTCMKTS:OMTK) & Tennant (NYSE:TNC)

Tennant (NYSE:TNC) and Omnitek Engineering (OTCMKTS:OMTK) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	1	2	1	0	2.00
Omnitek Engineering	0	0	0	0	0.00

Tennant presently has a consensus price target of $91.00, suggesting a potential upside of 37.08%. Given Tennant’s stronger consensus rating and higher probable upside, analysts clearly believe Tennant is more favorable than Omnitek Engineering.

Valuation and Earnings

This table compares Tennant and Omnitek Engineering”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.20 billion	0.99	$43.80 million	$2.34	28.37
Omnitek Engineering	$1.02 million	0.26	-$170,000.00	$0.02	0.60

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

Volatility and Risk

Tennant has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Omnitek Engineering has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tennant	3.64%	16.05%	8.19%
Omnitek Engineering	18.80%	-22.26%	28.98%

Insider and Institutional Ownership

93.3% of Tennant shares are held by institutional investors. 3.5% of Tennant 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 is poised for long-term growth.

Summary

Tennant beats Omnitek Engineering on 11 of the 14 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Omnitek Engineering

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.