Critical Comparison: ABCO Energy (OTCMKTS:ABCE) versus Nortech Systems (NASDAQ:NSYS)

Nortech Systems (NASDAQ:NSYS) and ABCO Energy (OTCMKTS:ABCE) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Insider and Institutional Ownership

3.1% of Nortech Systems shares are owned by institutional investors. 10.0% of Nortech Systems shares are owned by insiders. Comparatively, 0.1% of ABCO Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Nortech Systems and ABCO Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nortech Systems	-2.25%	-7.93%	-3.56%
ABCO Energy	N/A	N/A	N/A

Valuation and Earnings

This table compares Nortech Systems and ABCO Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nortech Systems	$128.13 million	0.17	-$1.29 million	($0.95)	-8.34
ABCO Energy	N/A	N/A	N/A	N/A	N/A

ABCO Energy has lower revenue, but higher earnings than Nortech Systems.

Analyst Recommendations

This is a summary of recent recommendations for Nortech Systems and ABCO Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nortech Systems	1	0	0	0	1.00
ABCO Energy	0	0	0	0	0.00

Given ABCO Energy’s higher possible upside, analysts plainly believe ABCO Energy is more favorable than Nortech Systems.

About Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

About ABCO Energy

ABCO Energy, Inc., together with its subsidiaries, operates as an electrical product and services supplier in the United States. The company sells and installs solar photovoltaic electric systems that allow customers to produce power on their residence or business property. It also sells and installs energy efficient lighting products, solar powered streetlights, and lighting accessories to residential and commercial customers. In addition, the company offers solar leasing and long term financing programs to its customers, and other marketing and installation organizations. Further, the company provides operations and maintenance services to residential and commercial customers. The company was formerly known as ENYC and changed its name to ABCO Energy, Inc. in October 2011. ABCO Energy, Inc. was founded in 2004 and is based in Tucson, Arizona.