Comparing Eltek (ELTK) & Its Rivals

Eltek (NASDAQ:ELTK) is one of 376 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its rivals? We will compare Eltek to similar companies based on the strength of its valuation, dividends, risk, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Eltek and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	1	0	0	0	1.00
Eltek Competitors	2048	7630	10467	668	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 32.95%. Given Eltek’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Eltek has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Eltek and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Eltek	$48.48 million	$830,000.00	-6.63
Eltek Competitors	$116.09 billion	$174.60 million	4.88

Eltek’s rivals have higher revenue and earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 3.2%. Eltek pays out -20.9% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 69.5% of their earnings in the form of a dividend. Eltek is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

64.6% of Eltek shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 72.0% of Eltek shares are owned by insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Eltek and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	-12.66%	-13.57%	-9.01%
Eltek Competitors	-139.91%	-19.77%	-5.96%

Volatility & Risk

Eltek has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Eltek’s rivals have a beta of -0.34, suggesting that their average share price is 134% less volatile than the S&P 500.

Summary

Eltek rivals beat Eltek on 8 of the 15 factors compared.

About Eltek

Eltek Ltd. is an Israel-based manufacturer of high-end printed circuit boards (PCBs). The company produces rigid, flexible, and rigid-flexible boards, as well as multilayer, high-density interconnect (HDI), and radio-frequency circuit boards. Its products are designed for applications that require complex circuitry, high reliability, and specialized manufacturing capabilities. Eltek serves customers in industries including aerospace and defense, medical equipment, industrial systems, telecommunications, automotive, and other technology markets.