SMC (OTCMKTS:SMCAY) versus Key Tronic (NASDAQ:KTCC) Head to Head Analysis

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

Risk & Volatility

SMC has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

1.0% of SMC shares are held by institutional investors. Comparatively, 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMC	19.41%	7.80%	7.08%
Key Tronic	-3.68%	-5.08%	-1.80%

Earnings and Valuation

This table compares SMC and Key Tronic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC	$5.20 billion	5.45	$1.03 billion	$0.84	26.43
Key Tronic	$467.87 million	0.07	-$8.32 million	($1.42)	-2.00

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SMC and Key Tronic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC	0	1	0	0	2.00
Key Tronic	1	0	0	0	1.00

Summary

SMC beats Key Tronic on 9 of the 12 factors compared between the two stocks.

About SMC

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.

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.