Head-To-Head Comparison: Eltek (NASDAQ:ELTK) vs. AUO (OTCMKTS:AUOTY)

Eltek (NASDAQ:ELTK) and AUO (OTCMKTS:AUOTY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eltek	-6.12%	-6.69%	-4.59%
AUO	2.06%	3.58%	1.48%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Eltek and AUO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	0	1	0	0	2.00
AUO	0	0	0	0	0.00

Volatility and Risk

Eltek has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, AUO has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Insider & Institutional Ownership

64.6% of Eltek shares are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Comparatively, 16.0% of AUO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Eltek and AUO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$51.79 million	1.15	$830,000.00	($0.45)	-19.73
AUO	$9.04 billion	0.63	$219.80 million	$0.24	30.67

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

Summary

AUO beats Eltek on 7 of the 12 factors compared between the two stocks.

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.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.