Analyzing Eltek (NASDAQ:ELTK) and Acorn Energy (NASDAQ:ACFN)

Eltek (NASDAQ:ELTK) and Acorn Energy (NASDAQ:ACFN) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Earnings and Valuation

This table compares Eltek and Acorn Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$48.48 million	1.25	$830,000.00	($0.91)	-9.89
Acorn Energy	$11.48 million	4.50	$2.51 million	$0.61	33.77

Acorn Energy has lower revenue, but higher earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than Acorn Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

64.6% of Eltek shares are owned by institutional investors. 72.0% of Eltek shares are owned by insiders. Comparatively, 35.6% of Acorn Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Eltek and Acorn Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	-12.66%	-13.57%	-9.01%
Acorn Energy	16.12%	10.06%	6.32%

Risk and Volatility

Eltek has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Acorn Energy has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Eltek and Acorn Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Acorn Energy	0	1	0	0	2.00

Summary

Acorn Energy beats Eltek on 8 of the 12 factors compared between the two stocks.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.

About Acorn Energy

Acorn Energy, Inc., through its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates through two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, compressors, pumps, pumpjacks, light towers, turbines, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The company was incorporated in 1986 and is based in Wilmington, Delaware.