Critical Review: CPS Technologies (CPSH) vs. Its Competitors

Insider and Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 63.8% of shares of all “ELEC – MISC COMPONENTS” companies are held by institutional investors. 15.4% of CPS Technologies shares are held by insiders. Comparatively, 13.1% of shares of all “ELEC – MISC COMPONENTS” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares CPS Technologies and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	-12.75%	-18.95%	-14.97%
CPS Technologies Competitors	3.57%	-15.55%	1.52%

Earnings & Valuation

This table compares CPS Technologies and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CPS Technologies	$21.12 million	-$3.13 million	-15.28
CPS Technologies Competitors	$2.48 billion	$167.51 million	32.00

CPS Technologies’ rivals have higher revenue and earnings than CPS Technologies. CPS Technologies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

CPS Technologies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, CPS Technologies’ rivals have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

Summary

CPS Technologies rivals beat CPS Technologies on 7 of the 9 factors compared.

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.