Omnitek Engineering (OTCMKTS:OMTK – Get Free Report) and Twin Disc (NASDAQ:TWIN – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Institutional & Insider Ownership
65.3% of Twin Disc shares are held by institutional investors. 45.5% of Omnitek Engineering shares are held by insiders. Comparatively, 22.1% of Twin Disc shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Omnitek Engineering and Twin Disc, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omnitek Engineering | 0 | 0 | 0 | 0 | 0.00 |
| Twin Disc | 1 | 0 | 1 | 0 | 2.00 |
Volatility & Risk
Omnitek Engineering has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500. Comparatively, Twin Disc has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.
Earnings and Valuation
This table compares Omnitek Engineering and Twin Disc”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omnitek Engineering | $1.02 million | 0.32 | -$170,000.00 | $0.01 | 1.49 |
| Twin Disc | $340.74 million | 0.66 | -$1.89 million | ($0.14) | -111.86 |
Omnitek Engineering has higher earnings, but lower revenue than Twin Disc. Twin Disc is trading at a lower price-to-earnings ratio than Omnitek Engineering, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Omnitek Engineering and Twin Disc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omnitek Engineering | 7.23% | -8.00% | 10.57% |
| Twin Disc | -0.56% | -1.22% | -0.57% |
Summary
Twin Disc beats Omnitek Engineering on 8 of the 14 factors compared between the two stocks.
About Omnitek Engineering
Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.
About Twin Disc
Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.
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