Head-To-Head Review: Eltek (NASDAQ:ELTK) vs. Taitron Components (NASDAQ:TAIT)

Taitron Components (NASDAQ:TAIT) and Eltek (NASDAQ:ELTK) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares Taitron Components and Eltek”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taitron Components	$3.54 million	3.43	$900,000.00	$0.07	28.86
Eltek	$51.79 million	0.97	$830,000.00	($0.91)	-8.23

Taitron Components has higher earnings, but lower revenue than Eltek. Eltek is trading at a lower price-to-earnings ratio than Taitron Components, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Taitron Components and Eltek, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taitron Components	0	0	0	0	0.00
Eltek	1	0	0	0	1.00

Profitability

This table compares Taitron Components and Eltek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taitron Components	-27.42%	-6.18%	-5.66%
Eltek	-12.66%	-13.57%	-9.01%

Risk and Volatility

Taitron Components has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Eltek has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

18.1% of Taitron Components shares are owned by institutional investors. Comparatively, 64.6% of Eltek shares are owned by institutional investors. 60.0% of Taitron Components shares are owned by company insiders. Comparatively, 72.0% of Eltek shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Eltek beats Taitron Components on 6 of the 11 factors compared between the two stocks.

About Taitron Components

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.