Financial Analysis: Teledyne Technologies (NYSE:TDY) versus CPS Technologies (NASDAQ:CPSH)

CPS Technologies (NASDAQ:CPSH) and Teledyne Technologies (NYSE:TDY) are both 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.

Risk and Volatility

CPS Technologies has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares CPS Technologies and Teledyne Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	-0.11%	-0.14%	-0.12%
Teledyne Technologies	15.29%	10.56%	7.34%

Insider & Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 91.6% of Teledyne Technologies shares are held by institutional investors. 13.2% of CPS Technologies shares are held by insiders. Comparatively, 1.4% of Teledyne Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares CPS Technologies and Teledyne Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$32.60 million	2.09	$420,000.00	($0.01)	-351.00
Teledyne Technologies	$6.37 billion	4.60	$894.80 million	$20.71	30.56

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

Analyst Ratings

This is a summary of current ratings for CPS Technologies and Teledyne Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	1	1	1	0	2.00
Teledyne Technologies	0	4	3	1	2.62

CPS Technologies presently has a consensus price target of $6.00, indicating a potential upside of 70.94%. Teledyne Technologies has a consensus price target of $723.33, indicating a potential upside of 14.28%. Given CPS Technologies’ higher probable upside, equities analysts plainly believe CPS Technologies is more favorable than Teledyne Technologies.

Summary

Teledyne Technologies beats CPS Technologies on 11 of the 14 factors compared between the two stocks.

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.

About Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.