Interlink Electronics (NASDAQ:LINK – Get Free Report) and CPS Technologies (NASDAQ:CPSH – Get Free Report) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Profitability
This table compares Interlink Electronics and CPS Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Interlink Electronics | -8.95% | -12.38% | -9.81% |
| CPS Technologies | -0.11% | -0.14% | -0.12% |
Insider and Institutional Ownership
11.2% of CPS Technologies shares are held by institutional investors. 77.5% of Interlink Electronics shares are held by insiders. Comparatively, 13.2% of CPS Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Interlink Electronics | $11.89 million | 6.86 | -$1.62 million | ($0.07) | -74.00 |
| CPS Technologies | $32.35 million | 2.41 | $420,000.00 | ($0.01) | -402.00 |
CPS Technologies has higher revenue and earnings than Interlink Electronics. CPS Technologies is trading at a lower price-to-earnings ratio than Interlink Electronics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Interlink Electronics and CPS Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Interlink Electronics | 1 | 0 | 0 | 0 | 1.00 |
| CPS Technologies | 1 | 1 | 1 | 0 | 2.00 |
CPS Technologies has a consensus price target of $6.00, indicating a potential upside of 49.25%. Given CPS Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe CPS Technologies is more favorable than Interlink Electronics.
Summary
CPS Technologies beats Interlink Electronics on 10 of the 13 factors compared between the two stocks.
About Interlink Electronics
Interlink Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, firmware, and software into sensor-based products and custom sensor system solutions in the United States, Asia, the Middle East, Europe, and internationally. The company's products include sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. It also provides simple force and piezo sensors to multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, the company offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, pressure mapping, biological monitoring, and others; and embedded firmware development and integration support services. It serves multi-national and start-up companies, technology design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, California.
About CPS Technologies
CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.
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