Head-To-Head Comparison: CTS (NYSE:CTS) and CPS Technologies (NASDAQ:CPSH)

CPS Technologies (NASDAQ:CPSHGet Free Report) and CTS (NYSE:CTSGet Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

11.2% of CPS Technologies shares are owned by institutional investors. Comparatively, 96.9% of CTS shares are owned by institutional investors. 15.6% of CPS Technologies shares are owned by insiders. Comparatively, 1.6% of CTS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CPS Technologies and CTS, as reported by MarketBeat.com.

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

CPS Technologies currently has a consensus target price of $6.00, suggesting a potential upside of 59.57%. Given CPS Technologies’ higher probable upside, research analysts clearly believe CPS Technologies is more favorable than CTS.

Profitability

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

Net Margins Return on Equity Return on Assets
CPS Technologies -1.94% -3.96% -3.01%
CTS 11.14% 11.92% 8.31%

Volatility and Risk

CPS Technologies has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, CTS has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares CPS Technologies and CTS”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CPS Technologies $21.12 million 3.20 -$3.13 million ($0.04) -94.00
CTS $515.77 million 2.59 $58.11 million $1.97 23.36

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

Summary

CTS beats CPS Technologies on 8 of the 13 factors compared between the two stocks.

About CPS Technologies

(Get Free Report)

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.

About CTS

(Get Free Report)

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.

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