Key Tronic (NASDAQ:KTCC) & nLight (NASDAQ:LASR) Head to Head Comparison

nLight (NASDAQ:LASR) and Key Tronic (NASDAQ:KTCC) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares nLight and Key Tronic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nLight	$261.33 million	8.73	-$23.47 million	($0.25)	-158.20
Key Tronic	$386.67 million	0.06	-$47.79 million	($4.40)	-0.48

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

Institutional and Insider Ownership

83.9% of nLight shares are owned by institutional investors. Comparatively, 40.7% of Key Tronic shares are owned by institutional investors. 3.1% of nLight shares are owned by company insiders. Comparatively, 7.9% of Key Tronic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

nLight has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares nLight and Key Tronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nLight	-4.02%	-2.83%	-2.26%
Key Tronic	-12.36%	-7.05%	-2.18%

Analyst Ratings

This is a breakdown of recent ratings for nLight and Key Tronic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nLight	1	1	8	1	2.82
Key Tronic	1	0	0	0	1.00

nLight currently has a consensus price target of $87.94, suggesting a potential upside of 122.35%. Given nLight’s stronger consensus rating and higher possible upside, analysts clearly believe nLight is more favorable than Key Tronic.

Summary

nLight beats Key Tronic on 11 of the 15 factors compared between the two stocks.

About nLight

nLIGHT, Inc. designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications. The company also provides laser sensors, including light detection and ranging technologies for intelligence, surveillance, and reconnaissance applications; and fiber amplifiers, beam combination, and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through independent sales representatives and distributors in Asia, Australia, Europe, the Middle East, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.

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.