API Technologies Corp (NASDAQ: ATNY) and InvenSense (NYSE:INVN) are both small-cap electronic equipment & parts – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

46.5% of InvenSense shares are held by institutional investors. 14.2% of InvenSense shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares API Technologies Corp and InvenSense’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
API Technologies Corp N/A N/A N/A ($0.48) -4.17
InvenSense N/A N/A N/A ($0.77) -16.87

InvenSense is trading at a lower price-to-earnings ratio than API Technologies Corp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares API Technologies Corp and InvenSense’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
API Technologies Corp -11.81% -30.24% -7.58%
InvenSense -20.65% -18.29% -11.24%

Analyst Ratings

This is a summary of current ratings and target prices for API Technologies Corp and InvenSense, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
API Technologies Corp 0 0 0 0 N/A
InvenSense 0 3 1 0 2.25

InvenSense has a consensus price target of $12.75, indicating a potential downside of 1.85%. Given InvenSense’s higher probable upside, analysts clearly believe InvenSense is more favorable than API Technologies Corp.

Summary

InvenSense beats API Technologies Corp on 5 of the 8 factors compared between the two stocks.

About API Technologies Corp

API Technologies Corp. (API) is engaged in providing radio frequency (RF) microwave, microelectronic, power and security solutions. The Company offers a range of RF, microwave, millimeter wave and microelectronics products ranging from components to complete system solutions. The Company operates through three segments. The Systems, Subsystems & Components (SSC) segment’s products include RF, microwave and millimeter wave products; microcircuits and microelectronics; electromagnetic integrated solutions, and power solutions. The Electronic Manufacturing Services segment offers electronics manufacturing services (EMS) for defense, commercial and medical customers. The Secure Systems & Information Assurance (SSIA) segment develops and offers various secure network and hardware solutions, including TEMPEST and Emanation Security, ruggedized systems, secure access, information assurance products, as well as TEMPEST certification.

About InvenSense

InvenSense, Inc. (InvenSense) is engaged in designing, developing, marketing and selling of sensor system-on-chip (SoC), including accelerometers, gyroscopes and microphones for the mobile, wearable, smart home, gaming, industrial and automotive market segments. The Company delivers solutions based on its motion and sound technology; focused on solutions, such as smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. Its motion solutions detect and track an object’s motion in three-dimensional space.

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