Nortech Systems (NASDAQ:NSYS) and Alps Electric (OTCMKTS:APELY) Head to Head Analysis

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

Risk and Volatility

Alps Electric has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Nortech Systems has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Alps Electric and Nortech Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	1	1	0	0	1.50
Nortech Systems	1	0	0	0	1.00

Insider & Institutional Ownership

0.1% of Alps Electric shares are held by institutional investors. Comparatively, 3.1% of Nortech Systems shares are held by institutional investors. 10.4% of Alps Electric shares are held by insiders. Comparatively, 11.0% of Nortech Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Alps Electric and Nortech Systems’ 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%
Nortech Systems	-2.25%	-7.93%	-3.56%

Earnings and Valuation

This table compares Alps Electric and Nortech Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.50 billion	0.45	$249.72 million	$3.36	8.32
Nortech Systems	$128.13 million	0.22	-$1.29 million	($0.95)	-10.53

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

Summary

Alps Electric beats Nortech Systems on 10 of the 12 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 Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.