Head-To-Head Review: Eltek (ELTK) & Its Peers

Eltek (NASDAQ:ELTK) is one of 376 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its peers? We will compare Eltek to similar businesses based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Valuation and Earnings

This table compares Eltek and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Eltek	$51.79 million	$830,000.00	-6.46
Eltek Competitors	$4.14 billion	$173.71 million	3.36

Eltek’s peers have higher revenue and earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Eltek and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Eltek Competitors	2059	7638	10469	670	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 34.50%. Given Eltek’s peers stronger consensus rating and higher probable upside, analysts clearly believe Eltek has less favorable growth aspects than its peers.

Profitability

This table compares Eltek and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	-12.66%	-13.57%	-9.01%
Eltek Competitors	-143.90%	-24.05%	-6.42%

Insider and Institutional Ownership

64.6% of Eltek shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 72.0% of Eltek shares are owned by company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Eltek has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Eltek’s peers have a beta of -0.24, meaning that their average stock price is 124% less volatile than the S&P 500.

Summary

Eltek peers beat Eltek on 8 of the 13 factors compared.

About Eltek

Eltek Ltd. is an Israel-based manufacturer of custom printed circuit boards (PCBs). Founded in 1970 and headquartered in Petah Tikva, the company produces advanced boards for customers with specialized performance and reliability requirements. Its products include multilayer, high-density interconnect, and flex-rigid PCBs. Eltek also provides related engineering and manufacturing services, supporting customers from product development through board production. Eltek serves customers in Israel and international markets, including North America, Europe, and Asia.