Head to Head Review: CPS Technologies (NASDAQ:CPSH) and Ultralife (NASDAQ:ULBI)

Ultralife (NASDAQ:ULBI) and CPS Technologies (NASDAQ:CPSH) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ultralife and CPS Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultralife	1	0	0	0	1.00
CPS Technologies	2	0	1	0	1.67

CPS Technologies has a consensus target price of $6.00, indicating a potential upside of 11.63%. Given CPS Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe CPS Technologies is more favorable than Ultralife.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ultralife	-4.37%	1.15%	0.70%
CPS Technologies	0.10%	0.16%	0.13%

Institutional & Insider Ownership

30.7% of Ultralife shares are held by institutional investors. Comparatively, 11.2% of CPS Technologies shares are held by institutional investors. 42.9% of Ultralife shares are held by company insiders. Comparatively, 13.2% of CPS Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Ultralife and CPS Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultralife	$191.16 million	0.54	-$5.90 million	($0.50)	-12.46
CPS Technologies	$32.60 million	2.98	$420,000.00	N/A	N/A

CPS Technologies has lower revenue, but higher earnings than Ultralife.

Risk & Volatility

Ultralife has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.

Summary

CPS Technologies beats Ultralife on 7 of the 12 factors compared between the two stocks.

About Ultralife

Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide. The company operates in two segments, Battery & Energy Products and Communications Systems. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium-ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables. The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. The company sells its products under the Ultralife, Ultralife HiRate, Ultralife Thin Cell, Ultralife Batteries, Lithium Power, McDowell Research, AMTITM, ABLETM, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE SEASAFE, Excell Battery Group, and Criterion Gauge brands through original equipment manufacturers, and industrial and defense supply distributors. In addition, it sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers. It serves government, defense, and commercial sectors. The company was incorporated in 1990 and is headquartered in Newark, New York.

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.