Comparing Nortech Systems (NASDAQ:NSYS) and Kyocera (OTCMKTS:KYOCY)

Nortech Systems (NASDAQ:NSYS) and Kyocera (OTCMKTS:KYOCY) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nortech Systems and Kyocera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nortech Systems	1	0	0	0	1.00
Kyocera	0	2	0	0	2.00

Profitability

This table compares Nortech Systems and Kyocera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nortech Systems	-2.25%	-7.93%	-3.56%
Kyocera	5.09%	3.14%	2.28%

Earnings & Valuation

This table compares Nortech Systems and Kyocera”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nortech Systems	$128.13 million	0.20	-$1.29 million	($0.95)	-9.89
Kyocera	$13.23 billion	1.85	$159.04 million	$0.50	34.78

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

Insider and Institutional Ownership

3.1% of Nortech Systems shares are owned by institutional investors. Comparatively, 7.4% of Kyocera shares are owned by institutional investors. 10.0% of Nortech Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Kyocera beats Nortech Systems on 10 of the 11 factors compared between the two stocks.

About Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

About Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.