Financial Survey: CTS Corporation (CTS) & AVX Corporation (AVX)

AVX Corporation (NYSE: AVX) and CTS Corporation (NYSE:CTS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider and Institutional Ownership

24.8% of AVX Corporation shares are owned by institutional investors. Comparatively, 91.9% of CTS Corporation shares are owned by institutional investors. 0.5% of AVX Corporation shares are owned by company insiders. Comparatively, 1.7% of CTS Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AVX Corporation and CTS Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AVX Corporation 9.46% 5.69% 5.10%
CTS Corporation 7.49% 11.54% 7.08%

Volatility and Risk

AVX Corporation has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, CTS Corporation has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for AVX Corporation and CTS Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVX Corporation 0 2 0 0 2.00
CTS Corporation 0 2 1 0 2.33

AVX Corporation presently has a consensus price target of $16.75, indicating a potential upside of 0.24%. CTS Corporation has a consensus price target of $24.50, indicating a potential upside of 12.64%. Given CTS Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe CTS Corporation is more favorable than AVX Corporation.

Dividends

AVX Corporation pays an annual dividend of $0.44 per share and has a dividend yield of 2.6%. CTS Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. AVX Corporation pays out 58.7% of its earnings in the form of a dividend. CTS Corporation pays out 17.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AVX Corporation has raised its dividend for 3 consecutive years and CTS Corporation has raised its dividend for 4 consecutive years.

Earnings and Valuation

This table compares AVX Corporation and CTS Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AVX Corporation $1.33 billion 2.12 $249.57 million $0.75 22.28
CTS Corporation $407.12 million 1.76 $76.03 million $0.91 23.90

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

Summary

CTS Corporation beats AVX Corporation on 11 of the 17 factors compared between the two stocks.

AVX Corporation Company Profile

AVX Corporation (AVX) is a manufacturer and supplier and reseller of a line of passive electronic components, interconnect devices and related products. AVX operates in three segments: Passive Components, Kyocera Electronic Devices (KED Resale) and Interconnect. The Passive Components segment consists of surface mount and leaded ceramic capacitors, surface mount and leaded tantalum capacitors, surface mount and leaded film capacitors, thick and thin film packages of multiple passive integrated components, thermistors, inductors and resistive products. The KED Resale segment consists of ceramic capacitors, frequency control devices, surface acoustic wave (SAW) devices, sensor products, radio frequency (RF) modules, actuators, acoustic devices and connectors produced by Kyocera and resold by AVX. The Interconnect segment consists primarily of AVX Interconnect automotive, telecom and memory connectors manufactured by AVX Interconnect or purchased from other manufacturers for resale.

CTS Corporation Company Profile

CTS Corporation is a manufacturer of sensors, electronic components and actuators. The Company designs, manufactures and sells a line of sensors, electronic components and actuators primarily to original equipment manufacturers (OEMs) for the transportation, industrial, medical, information technology, defense and aerospace, and communications markets. It operates manufacturing facilities in North America, Asia and Europe. Its products perform specific electronic functions for a given product family and are intended for use in customer assemblies. The Company’s products consist principally of sensors and actuators used in passenger or commercial vehicles; electronic components used in communications infrastructure, information technology and other high-speed applications; switches and potentiometers supplied to multiple markets, and fabricated piezoelectric materials and substrates used primarily in medical, industrial, defense and aerospace, and information technology markets.

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