Head to Head Analysis: CPS Technologies (NASDAQ:CPSH) vs. AAC Technologies (OTCMKTS:AACAY)

AAC Technologies (OTCMKTS:AACAY) and CPS Technologies (NASDAQ:CPSH) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares AAC Technologies and CPS Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAC Technologies	N/A	N/A	N/A
CPS Technologies	-1.94%	-3.96%	-3.01%

Valuation & Earnings

This table compares AAC Technologies and CPS Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAC Technologies	$3.80 billion	1.52	$249.99 million	$0.06	82.33
CPS Technologies	$21.12 million	2.88	-$3.13 million	($0.04)	-84.50

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

Institutional and Insider Ownership

11.2% of CPS Technologies shares are owned by institutional investors. 15.4% of CPS Technologies 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.

Analyst Ratings

This is a breakdown of recent recommendations for AAC Technologies and CPS Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAC Technologies	0	0	0	0	0.00
CPS Technologies	1	1	1	0	2.00

CPS Technologies has a consensus target price of $6.00, indicating a potential upside of 77.51%. Given CPS Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe CPS Technologies is more favorable than AAC Technologies.

Volatility and Risk

AAC Technologies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Summary

AAC Technologies beats CPS Technologies on 8 of the 14 factors compared between the two stocks.

About AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

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.