Critical Survey: Key Tronic (NASDAQ:KTCC) vs. Exro Technologies (OTCMKTS:EXROF)

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

Earnings and Valuation

This table compares Key Tronic and Exro Technologies”s top-line revenue, earnings per share 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)	-2.10
Exro Technologies	$16.84 million	0.03	-$210.86 million	($0.47)	0.00

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

Volatility & Risk

Key Tronic has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Exro Technologies has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Key Tronic and Exro Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
Exro Technologies	1	0	0	0	1.00

Institutional & Insider Ownership

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

Profitability

This table compares Key Tronic and Exro Technologies’ 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%
Exro Technologies	N/A	N/A	N/A

Summary

Key Tronic beats Exro Technologies on 6 of the 11 factors compared between the two stocks.

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 Exro Technologies

Exro Technologies Inc. focuses on developing generation power-control electronics in Canada. The company offers Exro Coil Driver, which allows the motor to switch between different operational profiles in real-time, as well as have multiple gears for scooters, electric bikes, recreational, light electric cars, motorcycles, fleet vans, electric buses, passenger vehicles, long-haul trucks, and industrial vehicles markets; and Exro Cell Driver, a stationary energy storage system for commercial and industrial energy storage applications. It also provides electric vehicle consulting and engineering services. The company was incorporated in 2014 and is headquartered in Calgary, Canada.