Analyzing BIO-key International (NASDAQ:BKYI) and Key Tronic (NASDAQ:KTCC)

BIO-key International (NASDAQ:BKYI) and Key Tronic (NASDAQ:KTCC) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

26.5% of BIO-key International shares are held by institutional investors. Comparatively, 40.7% of Key Tronic shares are held by institutional investors. 3.7% of BIO-key International shares are held by company insiders. Comparatively, 7.9% of Key Tronic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares BIO-key International and Key Tronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BIO-key International	-70.23%	-73.33%	-43.89%
Key Tronic	-2.69%	-8.43%	-3.06%

Volatility and Risk

BIO-key International has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for BIO-key International and Key Tronic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BIO-key International	1	0	0	0	1.00
Key Tronic	1	0	0	0	1.00

Valuation and Earnings

This table compares BIO-key International and Key Tronic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BIO-key International	$6.32 million	0.99	-$4.30 million	($1.04)	-0.55
Key Tronic	$467.87 million	0.06	-$8.32 million	($1.09)	-2.49

BIO-key International has higher earnings, but lower revenue than Key Tronic. Key Tronic is trading at a lower price-to-earnings ratio than BIO-key International, indicating that it is currently the more affordable of the two stocks.

Summary

Key Tronic beats BIO-key International on 7 of the 11 factors compared between the two stocks.

About BIO-key International

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.