Key Technology (NASDAQ: KTEC) and Intevac (NASDAQ:IVAC) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Earnings and Valuation
This table compares Key Technology and Intevac’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Key Technology||$129.89 million||0.88||$10.16 million||$0.52||33.94|
|Intevac||$112.89 million||1.55||$10.04 million||$0.24||33.54|
Key Technology has higher revenue and earnings than Intevac. Intevac is trading at a lower price-to-earnings ratio than Key Technology, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
44.6% of Key Technology shares are owned by institutional investors. Comparatively, 70.1% of Intevac shares are owned by institutional investors. 29.4% of Key Technology shares are owned by insiders. Comparatively, 13.9% of Intevac shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Key Technology and Intevac’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Key Technology has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Intevac has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
This is a summary of recent ratings for Key Technology and Intevac, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Intevac has a consensus target price of $13.75, suggesting a potential upside of 70.81%. Given Intevac’s higher probable upside, analysts clearly believe Intevac is more favorable than Key Technology.
Intevac beats Key Technology on 7 of the 13 factors compared between the two stocks.
About Key Technology
Key Technology, Inc. is a supplier of process automation solutions to the food processing industry and other industries, such as tobacco and pharmaceuticals. The Company designs, manufactures, sells and services automation equipment that processes product streams of discrete pieces. These systems integrate electro-optical automated inspection and digital sorting systems with other processing systems that include specialized conveying and preparation equipment. The Company provides parts and service for each of its product lines to customers around the world. Its automated inspection systems are used in various applications to detect and remove defects and foreign material from the product stream. It offers conveying and processing equipment, which are utilized throughout various industries to move and process product within a production plant. Its Integrated Solutions Group (ISG) provides integrated whole-line solutions. It has an installed base of inspection and processing systems.
Intevac, Inc. (Intevac) is a provider of vacuum deposition equipment for a range of thin-film applications, and digital night-vision technologies and products to the defense industry. The Company’s segments include Thin-film Equipment and Photonics. The Company designs, manufactures, markets and services capital equipment used to deposit thin films and lubricants onto substrates to produce magnetic disks that are used in hard disk drives. Its thin film equipment products include 200 Lean Disk Sputtering System, 200 Lean Etch and Deposition System, AccuLuber Disk Lubrication System, INTEVAC VERTEX System, INTEVAC MATRIX Implant System, ENERGi Implant System and INTEVAC MATRIX System. The Company’s photonic segment develops, manufactures and sells compact digital-optical products for the capture and display of low-light images.
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