Analyzing CPS Technologies (NASDAQ:CPSH) and Alps Electric (OTCMKTS:APELY)

Alps Electric (OTCMKTS:APELY) and CPS Technologies (NASDAQ:CPSH) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Alps Electric and CPS Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	0	1	0	0	2.00
CPS Technologies	1	1	1	0	2.00

CPS Technologies has a consensus price target of $6.00, suggesting a potential upside of 31.87%. Given CPS Technologies’ higher probable upside, analysts clearly believe CPS Technologies is more favorable than Alps Electric.

Profitability

This table compares Alps Electric and CPS Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	5.06%	5.32%	2.99%
CPS Technologies	1.29%	2.43%	1.90%

Earnings and Valuation

This table compares Alps Electric and CPS Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.50 billion	0.42	$249.72 million	$3.36	7.84
CPS Technologies	$32.60 million	2.51	$420,000.00	$0.03	151.67

Alps Electric has higher revenue and earnings than CPS Technologies. Alps Electric is trading at a lower price-to-earnings ratio than CPS Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Alps Electric has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Alps Electric shares are owned by institutional investors. Comparatively, 11.2% of CPS Technologies shares are owned by institutional investors. 10.4% of Alps Electric shares are owned by insiders. Comparatively, 15.6% of CPS Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

CPS Technologies beats Alps Electric on 7 of the 13 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.