Analyzing Key Tronic (NASDAQ:KTCC) & Dragonfly Energy (NASDAQ:DFLI)

Dragonfly Energy (NASDAQ:DFLI) and Key Tronic (NASDAQ:KTCC) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dragonfly Energy	-60.13%	N/A	-48.66%
Key Tronic	-2.69%	-8.43%	-3.06%

Risk & Volatility

Dragonfly Energy has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

8.2% of Dragonfly Energy shares are held by institutional investors. Comparatively, 40.7% of Key Tronic shares are held by institutional investors. 3.1% of Dragonfly Energy shares are held by company insiders. Comparatively, 7.9% of Key Tronic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Dragonfly Energy and Key Tronic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dragonfly Energy	$50.65 million	0.92	-$40.62 million	($31.00)	-0.12
Key Tronic	$467.87 million	0.06	-$8.32 million	($1.09)	-2.55

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

Analyst Recommendations

This is a breakdown of current recommendations for Dragonfly Energy and Key Tronic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dragonfly Energy	1	1	1	1	2.50
Key Tronic	1	0	0	0	1.00

Dragonfly Energy presently has a consensus price target of $17.50, suggesting a potential upside of 352.20%. Given Dragonfly Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Dragonfly Energy is more favorable than Key Tronic.

Summary

Key Tronic beats Dragonfly Energy on 8 of the 15 factors compared between the two stocks.

About Dragonfly Energy

Dragonfly Energy Holdings Corp. engages in the manufacturing and sale of deep cycle lithium-ion batteries for recreational vehicles, marine vessels, solar and off-grid residence industries, and industrial and energy storage markets. The company provides lithium power systems comprising solar panels, chargers and inverters, system monitoring, alternator regulators, accessories, and others. It also offers battery management systems for monitoring and controlling of battery systems and to protect battery cells from damage in various scenarios. The company provides its products under the Dragonfly Energy, Battle Born, and Wakespeed brand names. Dragonfly Energy Holdings Corp. is headquartered in Reno, Nevada.

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.