CTS (NYSE:CTS) versus TT Electronics (OTCMKTS:TTGPF) Financial Contrast

TT Electronics (OTCMKTS:TTGPF) and CTS (NYSE:CTS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for TT Electronics and CTS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TT Electronics	0	2	0	0	2.00
CTS	0	1	0	0	2.00

Volatility and Risk

TT Electronics has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, CTS has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TT Electronics	N/A	N/A	N/A
CTS	11.14%	11.92%	8.31%

Insider & Institutional Ownership

96.9% of CTS shares are held by institutional investors. 1.6% of CTS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TT Electronics	$665.93 million	0.53	-$68.24 million	N/A	N/A
CTS	$531.52 million	2.32	$58.11 million	$1.97	21.57

CTS has lower revenue, but higher earnings than TT Electronics.

Summary

CTS beats TT Electronics on 8 of the 9 factors compared between the two stocks.

About TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.

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.