CPS Technologies (NASDAQ:CPSH – Get Free Report) and PC Connection (NASDAQ:CNXN – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 42.8% of PC Connection shares are held by institutional investors. 13.2% of CPS Technologies shares are held by company insiders. Comparatively, 56.6% of PC Connection shares are held 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.
Analyst Ratings
This is a breakdown of recent ratings for CPS Technologies and PC Connection, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CPS Technologies | 1 | 1 | 1 | 0 | 2.00 |
| PC Connection | 0 | 0 | 1 | 1 | 3.50 |
Earnings & Valuation
This table compares CPS Technologies and PC Connection”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CPS Technologies | $32.60 million | 2.19 | $420,000.00 | ($0.01) | -369.00 |
| PC Connection | $2.87 billion | 0.79 | $83.72 million | $3.78 | 23.73 |
PC Connection has higher revenue and earnings than CPS Technologies. CPS Technologies is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CPS Technologies and PC Connection’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CPS Technologies | -0.11% | -0.14% | -0.12% |
| PC Connection | 3.21% | 10.90% | 7.29% |
Risk and Volatility
CPS Technologies has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, PC Connection has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Summary
PC Connection beats CPS Technologies on 11 of the 14 factors compared between the two stocks.
About CPS Technologies
CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.
About PC Connection
PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
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