Financial Comparison: Eltek (NASDAQ:ELTK) and Video Display (OTCMKTS:VIDE)

Video Display (OTCMKTS:VIDE) and Eltek (NASDAQ:ELTK) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

Video Display has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Eltek has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Video Display and Eltek, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Video Display	0	0	0	0	0.00
Eltek	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Video Display	N/A	N/A	N/A
Eltek	2.35%	2.68%	1.85%

Institutional & Insider Ownership

64.6% of Eltek shares are owned by institutional investors. 48.8% of Video Display shares are owned by insiders. Comparatively, 72.0% of Eltek shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Video Display and Eltek”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Video Display	$8.30 million	0.00	-$130,000.00	($0.13)	0.00
Eltek	$46.53 million	1.39	$4.22 million	$0.17	56.71

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

Summary

Eltek beats Video Display on 12 of the 12 factors compared between the two stocks.

About Video Display

Video Display Corporation, together with its subsidiaries, designs, engineers, manufactures, markets, distributes, and installs display products and systems for government, military, aerospace, medical, and commercial organizations worldwide. The company operates in four divisions: Simulation and Training Products; Cyber Secure Products; Data Display CRTs; and Other Computer Products. It offers dome and multi-faceted aircraft simulator display systems, video walls for broadcast and control centers, rugged video walls for combat information centers, rugged flat panel displays and computers, projector and monitor upgrades, and projection screens. The company also provides cyber security products, such as TEMPEST technology products and custom engineering solutions; and various contract services, including the design and testing solutions for defense and niche commercial uses. In addition, it manufactures and distributes cathode ray tubes (CRTs) for use in data display screens, such as computer terminal monitors, medical monitoring equipment, and various other data display applications, as well as in television sets; and distributes CRTs and other electronic tubes purchased from original equipment manufacturers, as well as offers cyber-secure keyboards. The company was founded in 1975 and is headquartered in Cocoa, Florida.

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.