Financial Analysis: Tempo Automation (NASDAQ:TMPOW) & Key Tronic (NASDAQ:KTCC)

Key Tronic (NASDAQ:KTCC) and Tempo Automation (NASDAQ:TMPOW) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Key Tronic and Tempo Automation, as provided by MarketBeat.

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

Given Tempo Automation’s higher possible upside, analysts clearly believe Tempo Automation is more favorable than Key Tronic.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$386.67 million	0.07	-$47.79 million	($4.40)	-0.56
Tempo Automation	$10.93 million	N/A	N/A	N/A	N/A

Tempo Automation has lower revenue, but higher earnings than Key Tronic.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-12.36%	-6.42%	-2.14%
Tempo Automation	N/A	N/A	N/A

Institutional & Insider Ownership

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

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 Tempo Automation

Tempo Automation Holdings, Inc. manufactures and sells electronic products. The company produces printed circuit board assemblies (PCBAs) for prototype and on-demand production markets; and turnkey PCBA services. It serves space, semiconductor, aviation and defense, and medical device, as well as industrials and e-commerce industries. Tempo Automation Holdings, Inc. was founded in 2013 and is headquartered in San Francisco, California.