Head-To-Head Contrast: EMC (EMC) versus Key Tronic (NASDAQ:KTCC)

EMC (NYSE: EMC) and Key Tronic (NASDAQ:KTCC) are both computer hardware – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

79.9% of EMC shares are held by institutional investors. Comparatively, 41.8% of Key Tronic shares are held by institutional investors. 0.4% of EMC shares are held by company insiders. Comparatively, 7.2% of Key Tronic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Key Tronic does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. Key Tronic has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for EMC and Key Tronic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMC 0 0 1 0 3.00
Key Tronic 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
EMC 10.47% 10.66% 5.47%
Key Tronic 0.93% 3.75% 1.83%

Earnings and Valuation

This table compares EMC and Key Tronic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMC N/A N/A N/A $1.07 27.15
Key Tronic $467.80 million 0.16 $5.61 million $0.39 17.92

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

Summary

EMC beats Key Tronic on 7 of the 11 factors compared between the two stocks.

About EMC

EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.

About Key Tronic

Key Tronic Corporation, doing business as KeyTronicEMS Co., is engaged in contract manufacturing for a range of products. The Company provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers (OEMs) of a range of products. The Company provides engineering services, procurement and distribution, materials management, manufacturing and assembly services, in-house testing, and customer service. The Company provides EMS services, such as product design, surface mount technologies (SMT) and pin through hole capability for printed circuit board assembly (PCBA), tool making, precision plastic molding, sheet metal fabrication, liquid injection molding, complex assembly, automated tape winding, prototype design and full product assembly. The Company’s manufacturing operations are located in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; Harrodsburg, Kentucky, and foreign manufacturing operations in Juarez, Mexico, and Shanghai, China.

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