Financial Analysis: CTS Corporation (CTS) vs. Its Peers
CTS Corporation (NYSE: CTS) is one of 32 publicly-traded companies in the “Electronic Component” industry, but how does it weigh in compared to its competitors? We will compare CTS Corporation to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Risk & Volatility
CTS Corporation has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, CTS Corporation’s competitors have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.
This table compares CTS Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CTS Corporation Competitors||2.04%||-1.99%||0.66%|
CTS Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. CTS Corporation pays out 17.6% of its earnings in the form of a dividend. As a group, “Electronic Component” companies pay a dividend yield of 2.5% and pay out 51.5% of their earnings in the form of a dividend. CTS Corporation has increased its dividend for 3 consecutive years.
Institutional and Insider Ownership
93.4% of CTS Corporation shares are owned by institutional investors. Comparatively, 56.3% of shares of all “Electronic Component” companies are owned by institutional investors. 1.8% of CTS Corporation shares are owned by insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares CTS Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CTS Corporation||$407.12 million||$76.03 million||24.84|
|CTS Corporation Competitors||$895.26 million||$186.21 million||10.25|
CTS Corporation’s competitors have higher revenue and earnings than CTS Corporation. CTS Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent ratings and target prices for CTS Corporation and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CTS Corporation Competitors||98||349||502||6||2.44|
CTS Corporation presently has a consensus price target of $24.50, suggesting a potential upside of 8.41%. As a group, “Electronic Component” companies have a potential downside of 1.68%. Given CTS Corporation’s higher probable upside, research analysts plainly believe CTS Corporation is more favorable than its competitors.
CTS Corporation beats its competitors on 8 of the 15 factors compared.
About CTS Corporation
CTS Corporation is a manufacturer of sensors, electronic components and actuators. The Company designs, manufactures and sells a line of sensors, electronic components and actuators primarily to original equipment manufacturers (OEMs) for the transportation, industrial, medical, information technology, defense and aerospace, and communications markets. It operates manufacturing facilities in North America, Asia and Europe. Its products perform specific electronic functions for a given product family and are intended for use in customer assemblies. The Company’s products consist principally of sensors and actuators used in passenger or commercial vehicles; electronic components used in communications infrastructure, information technology and other high-speed applications; switches and potentiometers supplied to multiple markets, and fabricated piezoelectric materials and substrates used primarily in medical, industrial, defense and aerospace, and information technology markets.
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