Eltek (NASDAQ:ELTK) and Nidec (OTCMKTS:NJDCY) Head to Head Review

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Eltek and Nidec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Nidec	0	3	0	0	2.00

Volatility & Risk

Eltek has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Nidec has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eltek	1.59%	1.85%	1.29%
Nidec	6.82%	10.15%	5.24%

Earnings & Valuation

This table compares Eltek and Nidec”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$51.79 million	1.09	$830,000.00	$0.12	70.25
Nidec	$17.12 billion	2.10	$1.11 billion	$0.26	14.52

Nidec has higher revenue and earnings than Eltek. Nidec 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. Comparatively, 0.2% of Nidec shares are held by institutional investors. 72.0% of Eltek shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Nidec beats Eltek on 9 of the 12 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 Nidec

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..