CTS (NYSE:CTS) & Hexagon (OTCMKTS:HXGBY) Head-To-Head Survey

CTS (NYSE:CTS) and Hexagon (OTCMKTS:HXGBY) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares CTS and Hexagon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$570.86 million	3.01	$65.32 million	$2.53	23.80
Hexagon	$6.14 billion	4.68	$698.53 million	$0.45	23.76

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

Volatility and Risk

CTS has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Hexagon has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for CTS and Hexagon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	1	3	0	2.75
Hexagon	1	2	0	0	1.67

CTS currently has a consensus target price of $73.50, suggesting a potential upside of 22.05%. Given CTS’s stronger consensus rating and higher probable upside, research analysts plainly believe CTS is more favorable than Hexagon.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CTS	12.94%	14.05%	10.10%
Hexagon	22.96%	9.95%	6.13%

Institutional & Insider Ownership

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

Dividends

CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. Hexagon pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. CTS pays out 6.3% of its earnings in the form of a dividend. Hexagon pays out 17.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

CTS beats Hexagon on 10 of the 16 factors compared between the two stocks.

About CTS

CTS Corporation designs and manufactures sensors, actuators and other electronic components for customers in a range of industries. Its products include frequency-control devices, connectivity components and electronic assemblies, as well as sensing and motion-control solutions. The company’s products are used in applications such as automotive systems, industrial equipment, medical devices, communications and aerospace and defense. CTS serves customers globally, with operations and business activities across multiple regions.

About Hexagon

Hexagon AB is a Sweden-based technology company that provides products and software for capturing, measuring and analyzing data about physical environments and manufactured products. Its technologies help customers create digital representations of assets, sites and processes. The company’s offerings include precision measurement systems, surveying and geospatial instruments, positioning technologies, and software for design, manufacturing and quality inspection. Hexagon serves industries such as manufacturing, construction, infrastructure, mining, agriculture and public safety.