Critical Survey: CPS Technologies (NASDAQ:CPSH) and Yaskawa Electric (OTCMKTS:YASKY)

Yaskawa Electric (OTCMKTS:YASKY) and CPS Technologies (NASDAQ:CPSH) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Earnings & Valuation

This table compares Yaskawa Electric and CPS Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yaskawa Electric	$3.53 billion	2.47	$376.12 million	$1.91	35.17
CPS Technologies	$21.12 million	4.62	-$3.13 million	($0.04)	-135.75

Yaskawa Electric has higher revenue and earnings than CPS Technologies. CPS Technologies is trading at a lower price-to-earnings ratio than Yaskawa Electric, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Yaskawa Electric has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. 15.6% of CPS Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yaskawa Electric	6.86%	8.26%	4.86%
CPS Technologies	-1.94%	-3.96%	-3.01%

Analyst Ratings

This is a summary of current ratings and target prices for Yaskawa Electric and CPS Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yaskawa Electric	0	1	2	2	3.20
CPS Technologies	1	1	1	0	2.00

CPS Technologies has a consensus price target of $6.00, indicating a potential upside of 10.50%. Given CPS Technologies’ higher probable upside, analysts clearly believe CPS Technologies is more favorable than Yaskawa Electric.

Summary

Yaskawa Electric beats CPS Technologies on 10 of the 15 factors compared between the two stocks.

About Yaskawa Electric

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. The company was founded in 1915 and is headquartered in Kitakyushu, 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.