Astrotech (NASDAQ:ASTC – Get Free Report) and Frequency Electronics (NASDAQ:FEIM – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
24.4% of Astrotech shares are held by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are held by institutional investors. 16.8% of Astrotech shares are held by company insiders. Comparatively, 17.3% of Frequency Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Astrotech and Frequency Electronics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astrotech | $1.05 million | 15.05 | -$13.85 million | ($8.41) | -0.89 |
| Frequency Electronics | $63.23 million | 11.21 | -$900,000.00 | ($0.09) | -704.44 |
Frequency Electronics has higher revenue and earnings than Astrotech. Frequency Electronics is trading at a lower price-to-earnings ratio than Astrotech, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Astrotech and Frequency Electronics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astrotech | 1 | 0 | 0 | 0 | 1.00 |
| Frequency Electronics | 0 | 1 | 1 | 1 | 3.00 |
Frequency Electronics has a consensus price target of $43.67, indicating a potential downside of 31.13%. Given Frequency Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Frequency Electronics is more favorable than Astrotech.
Profitability
This table compares Astrotech and Frequency Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astrotech | -1,397.82% | -81.85% | -65.46% |
| Frequency Electronics | -1.43% | -1.56% | -0.98% |
Risk and Volatility
Astrotech has a beta of 4.88, meaning that its share price is 388% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Summary
Frequency Electronics beats Astrotech on 12 of the 15 factors compared between the two stocks.
About Astrotech
Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.
About Frequency Electronics
Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.
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