Head to Head Comparison: Vuzix (NASDAQ:VUZI) and Eltek (NASDAQ:ELTK)

Eltek (NASDAQ:ELTK) and Vuzix (NASDAQ:VUZI) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings & Valuation

This table compares Eltek and Vuzix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$51.79 million	1.00	$830,000.00	($0.91)	-8.50
Vuzix	$5.91 million	36.36	-$32.27 million	($0.39)	-6.53

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

Institutional and Insider Ownership

64.6% of Eltek shares are held by institutional investors. Comparatively, 35.9% of Vuzix shares are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Comparatively, 7.3% of Vuzix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Eltek and Vuzix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Vuzix	1	0	0	0	1.00

Profitability

This table compares Eltek and Vuzix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	-12.66%	-13.57%	-9.01%
Vuzix	-519.11%	-125.60%	-78.58%

Volatility and Risk

Eltek has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Summary

Eltek beats Vuzix on 7 of the 11 factors compared between the two stocks.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.

About Vuzix

Vuzix Corporation designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. The company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays, and augmented reality, as well as original equipment manufacturer waveguide optical components and display engines. It also provides certified ERP SaaS logistics solution to support hand-held mobile phones and scanners used in logistics, warehousing, and manufacturing applications. It holds approximately 375 patents and patents pending and various IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. It sells its products through resellers, distributors, direct to commercial customers, and online stores, as well as various Vuzix operated web stores in North America, Europe, the Asia-Pacific, and internationally. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.