Reviewing CTS (NYSE:CTS) & ABCO Energy (OTCMKTS:ABCE)

CTS (NYSE:CTS) and ABCO Energy (OTCMKTS:ABCE) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Insider and Institutional Ownership

96.9% of CTS shares are owned by institutional investors. 2.4% of CTS shares are owned by company insiders. Comparatively, 0.1% of ABCO Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

CTS has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, ABCO Energy has a beta of -0.5, meaning that its stock price is 150% less volatile than the S&P 500.

Profitability

This table compares CTS and ABCO Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTS	12.46%	12.90%	9.13%
ABCO Energy	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for CTS and ABCO Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	1	0	1	3.00
ABCO Energy	0	0	0	0	0.00

Given ABCO Energy’s higher probable upside, analysts clearly believe ABCO Energy is more favorable than CTS.

Valuation and Earnings

This table compares CTS and ABCO Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$541.32 million	3.53	$65.32 million	$2.34	28.55
ABCO Energy	N/A	N/A	N/A	N/A	N/A

CTS has higher revenue and earnings than ABCO Energy.

Summary

CTS beats ABCO Energy on 9 of the 10 factors compared between the two stocks.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.

About ABCO Energy

ABCO Energy, Inc., together with its subsidiaries, operates as an electrical product and services supplier in the United States. The company sells and installs solar photovoltaic electric systems that allow customers to produce power on their residence or business property. It also sells and installs energy efficient lighting products, solar powered streetlights, and lighting accessories to residential and commercial customers. In addition, the company offers solar leasing and long term financing programs to its customers, and other marketing and installation organizations. Further, the company provides operations and maintenance services to residential and commercial customers. The company was formerly known as ENYC and changed its name to ABCO Energy, Inc. in October 2011. ABCO Energy, Inc. was founded in 2004 and is based in Tucson, Arizona.