Analyzing XCHG (NASDAQ:XCH) & Key Tronic (NASDAQ:KTCC)

Key Tronic (NASDAQ:KTCC) and XCHG (NASDAQ:XCH) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Key Tronic and XCHG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
XCHG	1	1	0	0	1.50

Insider & Institutional Ownership

40.7% of Key Tronic shares are held by institutional investors. 7.9% of Key Tronic shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Key Tronic has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, XCHG has a beta of -0.65, suggesting that its stock price is 165% less volatile than the S&P 500.

Valuation & Earnings

This table compares Key Tronic and XCHG”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.07	-$8.32 million	($1.42)	-2.00
XCHG	$42.20 million	1.56	-$11.94 million	($0.08)	-13.88

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

Profitability

This table compares Key Tronic and XCHG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-3.68%	-5.08%	-1.80%
XCHG	N/A	N/A	N/A

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.

About XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.