Intevac (NASDAQ: IVAC) and Key Technology (NASDAQ:KTEC) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Institutional and Insider Ownership
70.1% of Intevac shares are held by institutional investors. Comparatively, 44.6% of Key Technology shares are held by institutional investors. 13.9% of Intevac shares are held by insiders. Comparatively, 29.4% of Key Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Intevac and Key Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Intevac and Key Technology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Intevac||$112.89 million||1.62||$10.04 million||$0.24||35.00|
|Key Technology||$129.89 million||0.88||$10.16 million||$0.52||34.08|
Key Technology has higher revenue and earnings than Intevac. Key Technology is trading at a lower price-to-earnings ratio than Intevac, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Intevac and Key Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Intevac currently has a consensus price target of $13.75, indicating a potential upside of 63.69%. Given Intevac’s higher probable upside, equities analysts plainly believe Intevac is more favorable than Key Technology.
Risk and Volatility
Intevac has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Key Technology has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
Intevac beats Key Technology on 7 of the 13 factors compared between the two stocks.
Intevac Company Profile
Intevac, Inc. (Intevac) is a provider of vacuum deposition equipment for a range of thin-film applications, and digital night-vision technologies and products to the defense industry. The Company’s segments include Thin-film Equipment and Photonics. The Company designs, manufactures, markets and services capital equipment used to deposit thin films and lubricants onto substrates to produce magnetic disks that are used in hard disk drives. Its thin film equipment products include 200 Lean Disk Sputtering System, 200 Lean Etch and Deposition System, AccuLuber Disk Lubrication System, INTEVAC VERTEX System, INTEVAC MATRIX Implant System, ENERGi Implant System and INTEVAC MATRIX System. The Company’s photonic segment develops, manufactures and sells compact digital-optical products for the capture and display of low-light images.
Key Technology Company Profile
Key Technology, Inc. is a supplier of process automation solutions to the food processing industry and other industries, such as tobacco and pharmaceuticals. The Company designs, manufactures, sells and services automation equipment that processes product streams of discrete pieces. These systems integrate electro-optical automated inspection and digital sorting systems with other processing systems that include specialized conveying and preparation equipment. The Company provides parts and service for each of its product lines to customers around the world. Its automated inspection systems are used in various applications to detect and remove defects and foreign material from the product stream. It offers conveying and processing equipment, which are utilized throughout various industries to move and process product within a production plant. Its Integrated Solutions Group (ISG) provides integrated whole-line solutions. It has an installed base of inspection and processing systems.
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