Head to Head Survey: Eltek (NASDAQ:ELTK) versus Kyocera (OTCMKTS:KYOCY)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$46.53 million	1.24	$4.22 million	$0.17	50.59
Kyocera	$13.23 billion	1.50	$159.04 million	$0.22	64.18

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

Risk and Volatility

Eltek has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Kyocera has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Dividends

Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 2.2%. Kyocera pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. Eltek pays out 111.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kyocera pays out 118.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eltek is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	0	1	0	0	2.00
Kyocera	0	1	0	0	2.00

Insider & Institutional Ownership

64.6% of Eltek shares are held by institutional investors. Comparatively, 7.4% of Kyocera shares are held by institutional investors. 72.0% of Eltek shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eltek	2.35%	2.68%	1.85%
Kyocera	2.25%	1.37%	0.99%

Summary

Eltek beats Kyocera on 8 of the 13 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 Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.