Contrasting Eltek (NASDAQ:ELTK) and Yaskawa Electric (OTCMKTS:YASKY)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Yaskawa Electric and Eltek, as provided by MarketBeat.

Volatility & Risk

Yaskawa Electric has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Profitability

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

Dividends

Yaskawa Electric pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 2.2%. Yaskawa Electric pays out 18.7% of its earnings in the form of a dividend. 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.

Earnings and Valuation

This table compares Yaskawa Electric and Eltek”s gross revenue, earnings per share and valuation.

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

Insider & Institutional Ownership

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

Summary

Yaskawa Electric beats Eltek on 12 of the 16 factors compared between the two stocks.

About Yaskawa Electric

(Get Free Report)

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. The company was founded in 1915 and is headquartered in Kitakyushu, Japan.

About Eltek

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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.