Eltek (NASDAQ:ELTK) and Sparton (NYSE:SPA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
Earnings and Valuation
This table compares Eltek and Sparton’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eltek||$32.75 million||0.15||-$3.77 million||N/A||N/A|
|Sparton||$374.99 million||0.48||-$8.25 million||N/A||N/A|
Institutional & Insider Ownership
3.9% of Eltek shares are held by institutional investors. Comparatively, 74.0% of Sparton shares are held by institutional investors. 3.4% of Sparton shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Eltek and Sparton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Eltek has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Sparton has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Eltek and Sparton, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sparton beats Eltek on 8 of the 9 factors compared between the two stocks.
Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, and internationally. The company offers a range of custom designed PCBs, including rigid, double-sided, and multi-layer PCBs; and flexible circuitry, such as flex and flex rigid boards. It serves manufacturers of defense and aerospace, medical, industrial, telecom, and networking equipment, as well as contract electronic manufacturers and other industries. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was founded in 1970 and is headquartered in Petach Tikva, Israel. Eltek Ltd. is a subsidiary of Nistec Ltd.
Sparton Corporation, together with its subsidiaries, provides design, development, and manufacturing services for electromechanical devices; and engineered products in electromechanical value stream worldwide. The company operates through two segments, Manufacturing & Design Services (MDS), and Engineered Components & Products (ECP). The MDS segment is involved in the contract design, manufacture, and aftermarket repair and refurbishment of printed circuit card assemblies, sub-assemblies, full product assemblies, and cable/wire harnesses, as well as development of embedded software and software quality assurance services in connection with medical devices and diagnostic equipment. This segment serves original equipment manufacturers and emerging technology customers serving the medical and biotechnology, military and aerospace, and industrial and commercial markets. The ECP segment designs, develops, and produces proprietary products for domestic and foreign defense, and commercial applications. It offers anti-submarine warfare devices for the U.S. Navy and foreign governments; rugged flat panel display systems for military panel PC workstations, air traffic control and industrial, and commercial marine applications; and high performance industrial grade computer systems and peripherals, as well as develops and markets commercial products for underwater acoustics and microelectromechanical based inertial measurement. This segment also performs an engineering development function for the United States military and prime defense contractors. Sparton Corporation was founded in 1900 and is headquartered in Schaumburg, Illinois.
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