Critical Survey: Evercel (OTCMKTS:EVRC) & Eltek (NASDAQ:ELTK)

Eltek (NASDAQ:ELTK) and Evercel (OTCMKTS:EVRC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Eltek and Evercel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	2.35%	2.68%	1.85%
Evercel	N/A	N/A	N/A

Risk and Volatility

Eltek has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Evercel has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Eltek and Evercel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	0	1	0	0	2.00
Evercel	0	0	0	0	0.00

Institutional & Insider Ownership

64.6% of Eltek shares are owned by institutional investors. 72.0% of Eltek shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Eltek and Evercel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$46.53 million	1.38	$4.22 million	$0.17	56.06
Evercel	N/A	N/A	N/A	N/A	N/A

Eltek has higher revenue and earnings than Evercel.

Summary

Eltek beats Evercel on 8 of the 8 factors compared between the two stocks.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.

About Evercel

Evercel, Inc., through its interest in Printronix Holding Corporation, designs and manufactures printers and related consumables for various industrial printing applications worldwide. The company provides multi-technology supply chain printing solutions for various industries, including manufacturing, transportation and logistics, retail distribution, food and beverages distribution, and pharmaceutical distribution. Its line matrix printers are used in various applications, such as labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting. The company offers its products directly to end-users, as well as through channel partners, such as dealers and distributors. Evercel, Inc. was incorporated in 1998 and is based in Miami, Florida.