MTS Systems Corporation (NASDAQ: MTSC) and Polar Power (NASDAQ:POLA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Polar Power does not pay a dividend. MTS Systems Corporation pays out 91.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares MTS Systems Corporation and Polar Power’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MTS Systems Corporation||3.13%||12.49%||4.31%|
This is a summary of recent recommendations and price targets for MTS Systems Corporation and Polar Power, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MTS Systems Corporation||0||2||2||0||2.50|
MTS Systems Corporation currently has a consensus target price of $58.00, suggesting a potential upside of 20.33%. Polar Power has a consensus target price of $7.00, suggesting a potential upside of 61.66%. Given Polar Power’s stronger consensus rating and higher possible upside, analysts plainly believe Polar Power is more favorable than MTS Systems Corporation.
Insider & Institutional Ownership
12.8% of Polar Power shares are owned by institutional investors. 1.5% of MTS Systems Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares MTS Systems Corporation and Polar Power’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MTS Systems Corporation||$801.32 million||1.01||$113.92 million||$1.31||36.79|
|Polar Power||$22.14 million||1.98||$6.29 million||N/A||N/A|
MTS Systems Corporation has higher revenue and earnings than Polar Power.
MTS Systems Corporation beats Polar Power on 8 of the 13 factors compared between the two stocks.
MTS Systems Corporation Company Profile
MTS Systems Corporation is a supplier of test systems and position sensors. The Company operates through two segments: Test and Sensors. The Test segment provides testing solutions, including hardware, software and services to ground vehicles, materials and structures markets. The Sensors segment provides position sensors for a range of industrial and mobile hydraulic applications. The Sensors segment products are used by industrial machinery and mobile equipment manufacturers to automate the operation of their products for safety and end-user productivity. The Sensors segment manufactures products utilizing magnetostriction technology. Its technology, Temposonics, offers non-contact position sensing. Its Temposonics sensors provide position feedback for motion control systems. It also provides various service offerings, including calibration, maintenance, training and consulting. The Company has its manufacturing facilities in North America, Europe and Asia.
Polar Power Company Profile
Polar Power, Inc. is engaged in designing, manufacturing and selling direct current (DC) power systems for applications primarily in the telecommunications, military, electric vehicle charging, cogeneration, distributed power and uninterruptable power supply markets. Within the telecommunications market, the Company’s DC power systems provide DC power to service applications that do not have access to the utility grid (such as off-grid applications) or have critical power needs and cannot be without power in the event of utility grid failure (such as back-up power applications). Its product offerings include DC base power systems, DC hybrid power systems and DC solar hybrid power systems. The Company’s technologies include Permanent Magnet Homopolar Hybrid (PMHH) Technology and Supra Controller Technology. Its power and control system architecture is controlled by its digital control system, Supra Controller, which contains software configured to meet specific application needs.
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