Critical Review: Omron (OTCMKTS:OMRNY) vs. CPS Technologies (NASDAQ:CPSH)

Omron (OTCMKTS:OMRNY) and CPS Technologies (NASDAQ:CPSH) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

1.1% of Omron shares are held by institutional investors. Comparatively, 11.2% of CPS Technologies shares are held by institutional investors. 13.2% of CPS Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Omron and CPS Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omron	3.66%	2.90%	1.95%
CPS Technologies	0.10%	0.16%	0.13%

Volatility and Risk

Omron has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Omron and CPS Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	1	1	0	0	1.50
CPS Technologies	2	0	1	0	1.67

CPS Technologies has a consensus price target of $6.00, indicating a potential downside of 4.00%. Given CPS Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe CPS Technologies is more favorable than Omron.

Valuation & Earnings

This table compares Omron and CPS Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.10 billion	1.45	$188.01 million	$0.95	39.68
CPS Technologies	$32.60 million	3.46	$420,000.00	N/A	N/A

Omron has higher revenue and earnings than CPS Technologies.

Summary

CPS Technologies beats Omron on 7 of the 12 factors compared between the two stocks.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.