Reviewing CPS Technologies (NASDAQ:CPSH) and PC Connection (NASDAQ:CNXN)

PC Connection (NASDAQ:CNXN) and CPS Technologies (NASDAQ:CPSH) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Profitability

This table compares PC Connection and CPS Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PC Connection	3.21%	10.90%	7.29%
CPS Technologies	-0.11%	-0.14%	-0.12%

Earnings and Valuation

This table compares PC Connection and CPS Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PC Connection	$2.87 billion	0.76	$83.72 million	$3.78	22.91
CPS Technologies	$32.60 million	2.06	$420,000.00	($0.01)	-347.00

PC Connection has higher revenue and earnings than CPS Technologies. CPS Technologies is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

PC Connection has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for PC Connection and CPS Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PC Connection	0	1	1	0	2.50
CPS Technologies	1	1	1	0	2.00

CPS Technologies has a consensus price target of $6.00, indicating a potential upside of 72.91%. Given CPS Technologies’ higher probable upside, analysts clearly believe CPS Technologies is more favorable than PC Connection.

Insider and Institutional Ownership

42.8% of PC Connection shares are held by institutional investors. Comparatively, 11.2% of CPS Technologies shares are held by institutional investors. 56.6% of PC Connection shares are held by insiders. Comparatively, 13.2% of CPS Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PC Connection beats CPS Technologies on 10 of the 13 factors compared between the two stocks.

About PC Connection

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.