Cemtrex (NASDAQ:CETX) and CTS (NYSE:CTS) Critical Review

Cemtrex (NASDAQ:CETX) and CTS (NYSE:CTS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Earnings and Valuation

This table compares Cemtrex and CTS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cemtrex	$66.86 million	0.04	-$7.23 million	$4,095.00	0.00
CTS	$515.77 million	2.37	$58.11 million	$2.12	19.60

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

Profitability

This table compares Cemtrex and CTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemtrex	-33.76%	-627.53%	-36.58%
CTS	12.32%	12.31%	8.53%

Volatility & Risk

Cemtrex has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, CTS has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cemtrex and CTS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemtrex	0	0	0	0	0.00
CTS	0	1	0	0	2.00

Institutional and Insider Ownership

2.0% of Cemtrex shares are held by institutional investors. Comparatively, 96.9% of CTS shares are held by institutional investors. 1.6% of CTS 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.

Summary

CTS beats Cemtrex on 10 of the 12 factors compared between the two stocks.

About Cemtrex

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.