Contrasting Inno (NASDAQ:INHD) & CTS (NYSE:CTS)

CTS (NYSE:CTS) and Inno (NASDAQ:INHD) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Insider and Institutional Ownership

96.9% of CTS shares are owned by institutional investors. Comparatively, 0.2% of Inno shares are owned by institutional investors. 2.4% of CTS shares are owned by company insiders. Comparatively, 0.1% of Inno shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

CTS has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Inno has a beta of -24.12, meaning that its share price is 2,512% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CTS	12.37%	13.48%	9.62%
Inno	-72.63%	-9.47%	-9.36%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CTS and Inno, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	2	1	0	2.33
Inno	1	0	0	0	1.00

CTS presently has a consensus target price of $67.00, indicating a potential upside of 19.43%. Given CTS’s stronger consensus rating and higher possible upside, analysts clearly believe CTS is more favorable than Inno.

Valuation and Earnings

This table compares CTS and Inno”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$541.32 million	2.96	$65.32 million	$2.38	23.57
Inno	$2.85 million	3.63	-$7.08 million	($5.90)	-0.69

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

Summary

CTS beats Inno on 13 of the 14 factors compared between the two stocks.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.

About Inno

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.