Analyzing Trans-Lux (OTCMKTS:TNLX) & Key Tronic (NASDAQ:KTCC)

Key Tronic (NASDAQ:KTCC) and Trans-Lux (OTCMKTS:TNLX) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Volatility & Risk

Key Tronic has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Trans-Lux has a beta of -0.92, meaning that its share price is 192% less volatile than the S&P 500.

Profitability

This table compares Key Tronic and Trans-Lux’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-3.68%	-5.08%	-1.80%
Trans-Lux	N/A	N/A	N/A

Institutional and Insider Ownership

40.7% of Key Tronic shares are owned by institutional investors. Comparatively, 11.9% of Trans-Lux shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by company insiders. Comparatively, 58.7% of Trans-Lux shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Key Tronic and Trans-Lux”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.07	-$8.32 million	($1.42)	-2.10
Trans-Lux	$12.86 million	N/A	-$3.48 million	($0.25)	-0.24

Trans-Lux has lower revenue, but higher earnings than Key Tronic. Key Tronic is trading at a lower price-to-earnings ratio than Trans-Lux, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Key Tronic and Trans-Lux, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
Trans-Lux	0	0	0	0	0.00

Summary

Trans-Lux beats Key Tronic on 7 of the 11 factors compared between the two stocks.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.

About Trans-Lux

Trans-Lux Corporation engages in the design and manufacture of digital display solutions and fixed digit scoreboards. It operates in two segments, Digital Product Sales; and Digital Product Lease and Maintenance. The Digital Product Sales segment sells indoor and outdoor digital product signage products. The Digital Product Lease and Maintenance segment is involved in the lease and maintenance of indoor and outdoor digital product signage. The company offers LED display systems for use by sports arenas and stadiums; financial institutions, including brokerage firms, banks, energy companies, insurance companies, and mutual fund companies; educational institutions; outdoor advertising companies; corporate and government communication centers; retail outlets; casinos, racetracks and other gaming establishments; airports, train stations, bus terminals, and other transportation facilities; movie theatres; and health maintenance organizations, as well as in various other applications. It also provides TLVision, which consists of full-color video products for use in posting alphanumeric data and displaying of full HD video; and turnkey installation and support services. The company markets its products through direct sales representatives, and a network of independent dealers and distributors in the United States and Canada; and internal salespeople and independent distributors in the rest of North America, Europe, the Middle East, South America, Africa, the Far East, and Australia. Trans-Lux Corporation was incorporated in 1920 and is headquartered in New York, New York. Trans-Lux Corporation operates as a subsidiary of Unilumin North America Inc.