SMTC (SMTX) & Park Electrochemical (PKE) Head-To-Head Analysis

SMTC (NASDAQ:SMTX) and Park Electrochemical (NYSE:PKE) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Institutional and Insider Ownership

16.3% of SMTC shares are held by institutional investors. Comparatively, 82.0% of Park Electrochemical shares are held by institutional investors. 27.7% of SMTC shares are held by insiders. Comparatively, 8.8% of Park Electrochemical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for SMTC and Park Electrochemical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SMTC 0 0 0 0 N/A
Park Electrochemical 0 0 1 0 3.00

Park Electrochemical has a consensus target price of $24.00, indicating a potential upside of 33.26%. Given Park Electrochemical’s higher possible upside, analysts plainly believe Park Electrochemical is more favorable than SMTC.

Volatility & Risk

SMTC has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Park Electrochemical has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares SMTC and Park Electrochemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SMTC -1.00% -7.89% -2.17%
Park Electrochemical 25.50% 5.10% 3.70%

Dividends

Park Electrochemical pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. SMTC does not pay a dividend.

Valuation and Earnings

This table compares SMTC and Park Electrochemical’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SMTC $139.23 million 0.41 -$7.84 million N/A N/A
Park Electrochemical $111.20 million 3.28 $20.59 million N/A N/A

Park Electrochemical has lower revenue, but higher earnings than SMTC.

Summary

Park Electrochemical beats SMTC on 10 of the 12 factors compared between the two stocks.

SMTC Company Profile

SMTC Corporation provides electronics manufacturing services worldwide. The company offers end-to-end electronics manufacturing services, including product design and engineering; printed circuit board assembly; production, enclosure, cable assembly, and precision metal fabrication; systems integration and testing; and configuration to order, build to order, and direct order fulfillment services. It provides integrated contract manufacturing services to original equipment manufacturers and technology companies primarily in the industrial, networking and communications, power and energy, and medical market sectors. SMTC Corporation was founded in 1985 and is headquartered in Markham, Canada.

Park Electrochemical Company Profile

Park Electrochemical Corp., through its subsidiaries, develops, manufactures, markets, and sells high-technology digital and radio frequency/microwave printed circuit material products primarily for the telecommunications and Internet infrastructure, enterprise, and military/aerospace markets. It also designs, develops, and manufactures advanced composite materials, primary and secondary structures and assemblies, and low-volume tooling products for the aerospace markets. The company's advanced electronics materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnect systems, including backplanes, high speed/low loss multilayers, and high density interconnects. It markets and sells its electronics materials to independent printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries. The company has operations in North America, Europe, and Asia. Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.

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