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

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

Analyst Ratings

This is a summary of current ratings for Eltek and Yaskawa Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	0	1	0	0	2.00
Yaskawa Electric	0	1	2	2	3.20

Valuation & Earnings

This table compares Eltek and Yaskawa Electric”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$49.31 million	1.16	$4.22 million	$0.17	50.06
Yaskawa Electric	$3.53 billion	2.25	$376.12 million	$2.99	20.48

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.

Volatility and Risk

Eltek has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Yaskawa Electric has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eltek	2.35%	2.68%	1.85%
Yaskawa Electric	10.72%	13.12%	7.72%

Insider and Institutional Ownership

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

Dividends

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

Summary

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

About Eltek

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.

About Yaskawa Electric

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.