Analyzing CTS (CTS) & SMTC (SMTX)
CTS (NYSE:CTS) and SMTC (NASDAQ:SMTX) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Earnings & Valuation
This table compares CTS and SMTC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CTS||$422.99 million||2.16||$14.44 million||$1.23||22.41|
|SMTC||$139.23 million||0.84||-$7.84 million||($0.44)||-11.52|
This table compares CTS and SMTC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
CTS has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, SMTC has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Institutional & Insider Ownership
93.5% of CTS shares are held by institutional investors. Comparatively, 14.6% of SMTC shares are held by institutional investors. 1.9% of CTS shares are held by insiders. Comparatively, 27.7% of SMTC shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. SMTC does not pay a dividend. CTS pays out 13.0% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for CTS and SMTC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SMTC has a consensus price target of $6.00, suggesting a potential upside of 18.34%. Given SMTC’s higher possible upside, analysts plainly believe SMTC is more favorable than CTS.
CTS beats SMTC on 11 of the 15 factors compared between the two stocks.
CTS Corp is a designer and manufacturer of electronic components, actuators and sensors and a provider of services to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. The company manufacture products in North America, Europe and Asia. CTS was founded in 1896 and is headquartered in Lisle, IL.
SMTC Corporation provides electronics manufacturing services worldwide. The company offers end-to-end electronics manufacturing services, including product design and engineering; printed circuit board assembly; production, enclosure, cable assembly, and precision metal fabrication; systems integration and testing; and configuration to order, build to order, and direct order fulfillment services. It provides integrated contract manufacturing services to original equipment manufacturers and technology companies primarily in the industrial, networking and communications, power and energy, and medical market sectors. SMTC Corporation was founded in 1985 and is headquartered in Markham, Canada.
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