TDK (OTCMKTS:TTDKY) vs. Eltek (NASDAQ:ELTK) Financial Review

TDK (OTCMKTS:TTDKY) and Eltek (NASDAQ:ELTK) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for TDK and Eltek, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	0	0	1	4.00
Eltek	0	1	0	0	2.00

Volatility & Risk

TDK has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Eltek has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TDK	7.85%	9.83%	4.86%
Eltek	1.59%	1.85%	1.29%

Valuation and Earnings

This table compares TDK and Eltek”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TDK	$14.48 billion	1.71	$1.10 billion	$0.66	19.26
Eltek	$51.79 million	1.06	$830,000.00	$0.12	68.38

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

Dividends

TDK pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 2.3%. TDK pays out 18.2% of its earnings in the form of a dividend. Eltek pays out 158.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

64.6% of Eltek shares are owned by institutional investors. 0.0% of TDK shares are owned by company insiders. Comparatively, 72.0% of Eltek shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

TDK beats Eltek on 11 of the 15 factors compared between the two stocks.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

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.