Reviewing KVH Industries (KVHI) and Northstar Electronics (NEIK)

KVH Industries (NASDAQ:KVHI) and Northstar Electronics (OTCMKTS:NEIK) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

55.4% of KVH Industries shares are held by institutional investors. Comparatively, 0.0% of Northstar Electronics shares are held by institutional investors. 9.2% of KVH Industries shares are held by company insiders. Comparatively, 16.3% of Northstar Electronics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for KVH Industries and Northstar Electronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KVH Industries 0 0 2 0 3.00
Northstar Electronics 0 0 0 0 N/A

KVH Industries currently has a consensus target price of $17.00, indicating a potential upside of 54.55%. Given KVH Industries’ higher probable upside, analysts clearly believe KVH Industries is more favorable than Northstar Electronics.

Profitability

This table compares KVH Industries and Northstar Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KVH Industries -4.88% -0.87% -0.44%
Northstar Electronics N/A N/A -9,736.28%

Earnings & Valuation

This table compares KVH Industries and Northstar Electronics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KVH Industries $160.09 million 1.22 -$11.03 million ($0.13) -84.62
Northstar Electronics N/A N/A -$630,000.00 N/A N/A

Northstar Electronics has lower revenue, but higher earnings than KVH Industries.

Risk & Volatility

KVH Industries has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Northstar Electronics has a beta of -1.5, suggesting that its stock price is 250% less volatile than the S&P 500.

Summary

KVH Industries beats Northstar Electronics on 6 of the 10 factors compared between the two stocks.

About KVH Industries

KVH Industries, Inc. designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally. The company offers mobile satellite TV and communications products, including satellite TV antennas; two-way satellite communications systems; onboard V-IP terminals and hub equipment; network management hardware and software products for maritime communications; and Iridium OpenPort hardware products and services. It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services. In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems that enable platform and optical stabilization, navigation, pointing, and guidance; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications. Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; maritime e-learning content and related services; and services and support for the mini-VSAT Broadband solution. The company sells its mobile communications products through a network of independent retailers, chain stores, and distributors; and navigation products directly to the United States and foreign governments, and government contractors, as well as through authorized independent sales representatives. The company also sells and leases its products directly to end users. KVH Industries, Inc. was founded in 1978 and is headquartered in Middletown, Rhode Island.

About Northstar Electronics

Northstar Electronics, Inc. does not have significant operations. Previously, the company was engaged in the contract manufacturing of defense, aerospace, and homeland security products, as well as the underwater sonar sensors business. It intends to manufacture and market single engine airplane with industrial applications, as well as provide maintenance, repair, and overhaul services. The company was founded in 1998 and is based in Virginia Beach, Virginia.

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