Reviewing Interlink Electronics (NASDAQ:LINK) and Microwave Filter (OTCMKTS:MFCO)

Microwave Filter (OTCMKTS:MFCO) and Interlink Electronics (NASDAQ:LINK) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Earnings & Valuation

This table compares Microwave Filter and Interlink Electronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microwave Filter	$2.18 million	1.59	-$260,000.00	$0.06	22.50
Interlink Electronics	$11.89 million	6.96	-$1.62 million	($0.07)	-75.07

Microwave Filter has higher earnings, but lower revenue than Interlink Electronics. Interlink Electronics is trading at a lower price-to-earnings ratio than Microwave Filter, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Microwave Filter and Interlink Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microwave Filter	N/A	N/A	N/A
Interlink Electronics	-8.95%	-12.38%	-9.81%

Analyst Ratings

This is a summary of recent recommendations for Microwave Filter and Interlink Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microwave Filter	0	0	0	0	0.00
Interlink Electronics	1	0	1	0	2.00

Interlink Electronics has a consensus price target of $8.67, indicating a potential upside of 64.92%. Given Interlink Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Interlink Electronics is more favorable than Microwave Filter.

Summary

Microwave Filter beats Interlink Electronics on 6 of the 11 factors compared between the two stocks.

About Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.

About Interlink Electronics

Interlink Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, firmware, and software into sensor-based products and custom sensor system solutions in the United States, Asia, the Middle East, Europe, and internationally. The company's products include sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. It also provides simple force and piezo sensors to multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, the company offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, pressure mapping, biological monitoring, and others; and embedded firmware development and integration support services. It serves multi-national and start-up companies, technology design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, California.