MultiSensor AI (NASDAQ:MSAI – Get Free Report) and CTS (NYSE:CTS – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings and target prices for MultiSensor AI and CTS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MultiSensor AI | 1 | 1 | 0 | 0 | 1.50 |
| CTS | 0 | 1 | 3 | 0 | 2.75 |
CTS has a consensus price target of $73.50, suggesting a potential upside of 18.61%. Given CTS’s stronger consensus rating and higher possible upside, analysts clearly believe CTS is more favorable than MultiSensor AI.
Risk and Volatility
MultiSensor AI has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, CTS has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Institutional & Insider Ownership
82.3% of MultiSensor AI shares are owned by institutional investors. Comparatively, 96.9% of CTS shares are owned by institutional investors. 50.8% of MultiSensor AI shares are owned by insiders. Comparatively, 2.4% of CTS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares MultiSensor AI and CTS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MultiSensor AI | -141.70% | -36.08% | -31.31% |
| CTS | 12.94% | 14.05% | 10.10% |
Valuation & Earnings
This table compares MultiSensor AI and CTS”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MultiSensor AI | $5.55 million | 1.26 | -$11.71 million | ($5.62) | -0.56 |
| CTS | $570.86 million | 3.09 | $65.32 million | $2.53 | 24.49 |
CTS has higher revenue and earnings than MultiSensor AI. MultiSensor AI is trading at a lower price-to-earnings ratio than CTS, indicating that it is currently the more affordable of the two stocks.
Summary
CTS beats MultiSensor AI on 13 of the 14 factors compared between the two stocks.
About MultiSensor AI
MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.
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.
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