Eltek (NASDAQ:ELTK – Get Free Report) and Taitron Components (NASDAQ:TAIT – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Risk & Volatility
Eltek has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Taitron Components has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider and Institutional Ownership
64.6% of Eltek shares are held by institutional investors. Comparatively, 18.1% of Taitron Components shares are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Comparatively, 60.0% of Taitron Components shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eltek | $51.79 million | 1.02 | $830,000.00 | ($0.91) | -8.66 |
| Taitron Components | $3.54 million | 3.46 | $900,000.00 | $0.07 | 29.14 |
Taitron Components has lower revenue, but higher earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than Taitron Components, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Eltek and Taitron Components’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eltek | -12.66% | -13.57% | -9.01% |
| Taitron Components | -27.42% | -6.18% | -5.66% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Eltek and Taitron Components, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eltek | 1 | 0 | 0 | 0 | 1.00 |
| Taitron Components | 1 | 0 | 0 | 0 | 1.00 |
Summary
Eltek beats Taitron Components on 6 of the 11 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 Taitron Components
Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.
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