CTS (NYSE:CTS) & NeoMagic (OTCMKTS:NMGC) Head-To-Head Analysis

CTS (NYSE:CTS) and NeoMagic (OTCMKTS:NMGC) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Risk & Volatility

CTS has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500.

Valuation and Earnings

This table compares CTS and NeoMagic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$541.32 million	3.28	$65.32 million	$2.38	26.09
NeoMagic	N/A	N/A	N/A	N/A	N/A

CTS has higher revenue and earnings than NeoMagic.

Analyst Recommendations

This is a breakdown of recent ratings for CTS and NeoMagic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	1	1	0	2.50
NeoMagic	0	0	0	0	0.00

Insider and Institutional Ownership

96.9% of CTS shares are held by institutional investors. 2.4% of CTS shares are held by company insiders. Comparatively, 12.7% of NeoMagic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CTS	12.37%	13.48%	9.62%
NeoMagic	N/A	N/A	N/A

Summary

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

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.

About NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.