SigmaTron International (NASDAQ:SGMA) and SMTC (NASDAQ:SMTX) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Valuation and Earnings
This table compares SigmaTron International and SMTC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SigmaTron International||$278.13 million||0.04||-$3.24 million||N/A||N/A|
|SMTC||$139.23 million||0.84||-$7.84 million||($0.44)||-11.52|
SigmaTron International has higher revenue and earnings than SMTC.
This is a breakdown of current recommendations and price targets for SigmaTron International and SMTC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SMTC has a consensus target price of $6.00, indicating a potential upside of 18.34%. Given SMTC’s higher possible upside, analysts clearly believe SMTC is more favorable than SigmaTron International.
This table compares SigmaTron International and SMTC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
29.2% of SigmaTron International shares are held by institutional investors. Comparatively, 14.6% of SMTC shares are held by institutional investors. 8.2% of SigmaTron International shares are held by insiders. Comparatively, 27.7% of SMTC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
SigmaTron International has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, SMTC has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500.
SigmaTron International beats SMTC on 7 of the 12 factors compared between the two stocks.
SigmaTron International Company Profile
SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS). Its EMS services include the production of printed circuit board assemblies and completely assembled (box-build) electronic products. The company also offers automatic and manual assembly, and testing of products; material sourcing and procurement services; manufacturing and test engineering support services; design services; warehousing and distribution services; and assistance in obtaining product approval from governmental and other regulatory bodies. It primarily serves customers operating in the industrial electronics, consumer electronics, and medical/life sciences industries in the United States, Mexico, China, Vietnam, and Taiwan. The company markets its services through independent manufacturers' representative organizations. SigmaTron International, Inc. was founded in 1993 and is headquartered in Elk Grove Village, Illinois.
SMTC Company Profile
SMTC Corporation provides electronics manufacturing services worldwide. The company offers end-to-end electronics manufacturing services, including product design and engineering; printed circuit board assembly; production, enclosure, cable assembly, and precision metal fabrication; systems integration and testing; and configuration to order, build to order, and direct order fulfillment services. It provides integrated contract manufacturing services to original equipment manufacturers and technology companies primarily in the industrial, networking and communications, power and energy, and medical market sectors. SMTC Corporation was founded in 1985 and is headquartered in Markham, Canada.
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