Digital River (NASDAQ: DRIV) and Key Tronic Corporation (NASDAQ:KTCC) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Digital River and Key Tronic Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital River 0 0 0 0 N/A
Key Tronic Corporation 0 0 1 0 3.00

Key Tronic Corporation has a consensus target price of $9.25, suggesting a potential upside of 33.29%. Given Key Tronic Corporation’s higher probable upside, analysts plainly believe Key Tronic Corporation is more favorable than Digital River.

Insider & Institutional Ownership

41.6% of Key Tronic Corporation shares are owned by institutional investors. 7.1% of Key Tronic Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Digital River and Key Tronic Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital River 4.52% 4.51% 2.18%
Key Tronic Corporation 1.20% 5.08% 2.41%

Valuation & Earnings

This table compares Digital River and Key Tronic Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Digital River N/A N/A N/A N/A N/A
Key Tronic Corporation $467.80 million 0.16 $16.61 million $0.51 13.61

Key Tronic Corporation has higher revenue and earnings than Digital River.

Summary

Key Tronic Corporation beats Digital River on 7 of the 8 factors compared between the two stocks.

Digital River Company Profile

Digital River, Inc. (Digital River) is engaged in providing Commerce-as-a-Service solutions. The Company operates through a single segment, being providing solutions to companies that want to sell their products and services online. It provides commerce, payments and marketing solutions to business-to-business (B2B) and business-to-consumer (B2C) digital product and cloud service companies and manufacturers. The Company’s Commerce-as-a-Service suite includes commerce experience, tools and capabilities; Commerce Business Infrastructure (CBI); and marketing services. Its payments solutions offer customers a global payments footprint, including a range of domestic and international payment solutions, 180 global payment methods, 170 international currencies and 50 connections to local banks from across the globe. It provides a range of marketing services including paid search advertising, search engine optimization, affiliate marketing, store optimization and others.

Key Tronic Corporation Company Profile

Key Tronic Corporation, doing business as KeyTronicEMS Co., is engaged in contract manufacturing for a range of products. The Company provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers (OEMs) of a range of products. The Company provides engineering services, procurement and distribution, materials management, manufacturing and assembly services, in-house testing, and customer service. The Company provides EMS services, such as product design, surface mount technologies (SMT) and pin through hole capability for printed circuit board assembly (PCBA), tool making, precision plastic molding, sheet metal fabrication, liquid injection molding, complex assembly, automated tape winding, prototype design and full product assembly. The Company’s manufacturing operations are located in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; Harrodsburg, Kentucky, and foreign manufacturing operations in Juarez, Mexico, and Shanghai, China.

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