Comparing ICZOOM Group (NASDAQ:IZM) and Nortech Systems (NASDAQ:NSYS)

Nortech Systems (NASDAQ:NSYS) and ICZOOM Group (NASDAQ:IZM) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Risk and Volatility

Nortech Systems has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, ICZOOM Group has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Nortech Systems and ICZOOM Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nortech Systems	1	0	0	0	1.00
ICZOOM Group	1	0	0	0	1.00

Earnings and Valuation

This table compares Nortech Systems and ICZOOM Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nortech Systems	$128.13 million	0.22	-$1.29 million	($0.95)	-10.53
ICZOOM Group	$187.05 million	0.02	$1.19 million	N/A	N/A

ICZOOM Group has higher revenue and earnings than Nortech Systems.

Profitability

This table compares Nortech Systems and ICZOOM Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nortech Systems	-2.25%	-7.93%	-3.56%
ICZOOM Group	N/A	N/A	N/A

Insider & Institutional Ownership

3.1% of Nortech Systems shares are owned by institutional investors. Comparatively, 34.3% of ICZOOM Group shares are owned by institutional investors. 11.0% of Nortech Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ICZOOM Group beats Nortech Systems on 7 of the 9 factors compared between the two stocks.

About Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

About ICZOOM Group

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in Hong Kong and the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers customs clearance, temporary warehousing, logistic, and shipping services. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. ICZOOM Group Inc. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.