Comparing Key Tronic (NASDAQ:KTCC) and AUO (OTCMKTS:AUOTY)

Key Tronic (NASDAQ:KTCC) and AUO (OTCMKTS:AUOTY) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Key Tronic has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Insider & Institutional Ownership

40.7% of Key Tronic shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by company insiders. Comparatively, 16.0% of AUO shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.09	-$8.32 million	($1.60)	-2.33
AUO	$9.04 billion	0.68	$219.80 million	$0.22	36.32

AUO has higher revenue and earnings than Key Tronic. Key Tronic is trading at a lower price-to-earnings ratio than AUO, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-4.40%	-7.24%	-2.48%
AUO	1.82%	3.13%	1.29%

Analyst Recommendations

This is a summary of current ratings and target prices for Key Tronic and AUO, as provided by MarketBeat.com.

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

Summary

AUO beats Key Tronic on 9 of the 12 factors compared between the two stocks.

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.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.