CTS (NYSE:CTS) vs. AAC Technologies (OTCMKTS:AACAY) Financial Survey

CTS (NYSE:CTS) and AAC Technologies (OTCMKTS:AACAY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

96.9% of CTS shares are held by institutional investors. 2.4% of CTS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CTS and AAC Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTS	12.07%	12.14%	8.56%
AAC Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for CTS and AAC Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	1	0	0	2.00
AAC Technologies	0	1	0	0	2.00

Volatility and Risk

CTS has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, AAC Technologies has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares CTS and AAC Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$541.32 million	2.97	$65.32 million	$2.19	25.60
AAC Technologies	$4.43 billion	1.27	$349.42 million	N/A	N/A

AAC Technologies has higher revenue and earnings than CTS.

Dividends

CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. AAC Technologies pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. CTS pays out 7.3% of its earnings in the form of a dividend.

Summary

CTS beats AAC Technologies on 6 of the 11 factors compared between the two stocks.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.

About AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.