Reviewing CPS Technologies (NASDAQ:CPSH) & TDK (OTCMKTS:TTDKY)

CPS Technologies (NASDAQ:CPSH) and TDK (OTCMKTS:TTDKY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Volatility & Risk

CPS Technologies has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, TDK has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares CPS Technologies and TDK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	1.29%	2.43%	1.90%
TDK	7.85%	9.83%	4.86%

Analyst Recommendations

This is a summary of recent recommendations for CPS Technologies and TDK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	1	1	1	0	2.00
TDK	0	0	0	1	4.00

CPS Technologies presently has a consensus price target of $6.00, indicating a potential upside of 27.12%. Given CPS Technologies’ higher probable upside, equities research analysts plainly believe CPS Technologies is more favorable than TDK.

Valuation and Earnings

This table compares CPS Technologies and TDK”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$32.60 million	2.61	$420,000.00	$0.03	157.33
TDK	$14.48 billion	1.97	$1.10 billion	$0.66	22.24

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

Institutional and Insider Ownership

11.2% of CPS Technologies shares are held by institutional investors. 13.2% of CPS Technologies shares are held by insiders. Comparatively, 0.0% of TDK shares are held 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

TDK beats CPS Technologies on 8 of the 15 factors compared between the two stocks.

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.

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.