Key Tronic (NASDAQ:KTCC – Get Free Report) and Bel Fuse (NASDAQ:BELFA – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for Key Tronic and Bel Fuse, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Key Tronic | 1 | 0 | 0 | 0 | 1.00 |
| Bel Fuse | 0 | 1 | 1 | 1 | 3.00 |
Bel Fuse has a consensus target price of $115.00, indicating a potential downside of 22.01%. Given Bel Fuse’s stronger consensus rating and higher possible upside, analysts clearly believe Bel Fuse is more favorable than Key Tronic.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Key Tronic | $467.87 million | 0.06 | -$8.32 million | ($1.09) | -2.28 |
| Bel Fuse | $534.79 million | 3.49 | $40.96 million | $4.93 | 29.91 |
Bel Fuse has higher revenue and earnings than Key Tronic. Key Tronic is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Key Tronic and Bel Fuse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Key Tronic | -2.69% | -8.43% | -3.06% |
| Bel Fuse | 10.04% | 21.18% | 8.77% |
Insider & Institutional Ownership
40.7% of Key Tronic shares are owned by institutional investors. Comparatively, 6.0% of Bel Fuse shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by insiders. Comparatively, 5.5% of Bel Fuse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Key Tronic has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Summary
Bel Fuse beats Key Tronic on 13 of the 15 factors compared between the two stocks.
About Key Tronic
Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.
About Bel Fuse
Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.
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