Analyzing Key Tronic (NASDAQ:KTCC) and Schmitt Industries (NASDAQ:SMIT)

Schmitt Industries (NASDAQ:SMIT) and Key Tronic (NASDAQ:KTCC) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Schmitt Industries has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares Schmitt Industries and Key Tronic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schmitt Industries	$9.89 million	0.01	-$3.28 million	N/A	N/A
Key Tronic	$395.13 million	0.11	-$8.32 million	($1.60)	-2.46

Schmitt Industries has higher earnings, but lower revenue than Key Tronic.

Profitability

This table compares Schmitt Industries and Key Tronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schmitt Industries	N/A	N/A	N/A
Key Tronic	-4.40%	-7.24%	-2.48%

Institutional & Insider Ownership

40.7% of Key Tronic shares are owned by institutional investors. 17.1% of Schmitt Industries shares are owned by company insiders. Comparatively, 7.9% of Key Tronic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Schmitt Industries and Key Tronic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schmitt Industries	0	0	0	0	0.00
Key Tronic	1	0	0	0	1.00

About Schmitt Industries

Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide. The company operates through two segments, Measurement and Ice Cream. The Measurement segment designs, manufactures, and sells laser and confocal chromatic white light sensors for distance measurement and dimensional sizing products under the Acuity brand name for various industrial applications, including manufacturing, lumber production, steel casting, glass and paper production, medical imaging, crane control and micron-level part, and surface inspection. It also offers AR2700 high speed long range sensor for application in bridge crane monitoring, trolley positioning, and altitude measurements; 8-inch touch panel display, a full suite of connection ports; and satellite focused remote tank monitoring products under the Xact brand that measure the fill levels of tanks holding propane, diesel, and other tank-based liquids, as well as related monitoring services, including transmission of fill data from the tanks via satellite to a secure website for display. The Ice Cream segment manufactures, wholesales, and retails ice creams, ice cream cakes, and related products, as well as sells through its website; and serves ice cream at catering events and holds various community-building events comprising ice cream classes, and live comedy and music performances through Ample Hills Creamery brand. Schmitt Industries, Inc. was incorporated in 1984 and is headquartered in Portland, Oregon.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.