Comparing Eltek (NASDAQ:ELTK) and Microwave Filter (OTCMKTS:MFCO)

Eltek (NASDAQ:ELTK) and Microwave Filter (OTCMKTS:MFCO) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Profitability

This table compares Eltek and Microwave Filter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	1.59%	1.85%	1.29%
Microwave Filter	N/A	N/A	N/A

Risk & Volatility

Eltek has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Microwave Filter has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Valuation and Earnings

This table compares Eltek and Microwave Filter”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$51.79 million	1.08	$830,000.00	$0.12	69.63
Microwave Filter	$2.18 million	0.85	-$260,000.00	N/A	N/A

Eltek has higher revenue and earnings than Microwave Filter.

Institutional and Insider Ownership

64.6% of Eltek shares are owned by institutional investors. 72.0% of Eltek shares are owned by insiders. Comparatively, 6.9% of Microwave Filter shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Eltek and Microwave Filter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Microwave Filter	0	0	0	0	0.00

Summary

Eltek beats Microwave Filter on 10 of the 10 factors compared between the two stocks.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.

About Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.