nVent Electric (NYSE:NVT – Get Free Report) and CTS (NYSE:CTS – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Earnings and Valuation
This table compares nVent Electric and CTS”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nVent Electric | $4.33 billion | 6.09 | $710.20 million | $3.01 | 54.08 |
| CTS | $554.78 million | 3.23 | $65.32 million | $2.34 | 26.78 |
Risk & Volatility
nVent Electric has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, CTS has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for nVent Electric and CTS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nVent Electric | 0 | 1 | 11 | 1 | 3.00 |
| CTS | 0 | 1 | 0 | 1 | 3.00 |
nVent Electric currently has a consensus price target of $184.20, suggesting a potential upside of 13.15%. Given nVent Electric’s higher possible upside, equities analysts plainly believe nVent Electric is more favorable than CTS.
Insider and Institutional Ownership
90.1% of nVent Electric shares are held by institutional investors. Comparatively, 96.9% of CTS shares are held by institutional investors. 1.7% of nVent Electric shares are held by insiders. Comparatively, 2.4% of CTS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares nVent Electric and CTS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nVent Electric | 11.37% | 16.82% | 9.03% |
| CTS | 12.46% | 12.90% | 9.13% |
Dividends
nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. CTS pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. nVent Electric pays out 27.9% of its earnings in the form of a dividend. CTS pays out 6.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. nVent Electric has raised its dividend for 2 consecutive years. nVent Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
nVent Electric beats CTS on 11 of the 16 factors compared between the two stocks.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
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.
Receive News & Ratings for nVent Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for nVent Electric and related companies with MarketBeat.com's FREE daily email newsletter.
