Head to Head Review: Key Tronic (NASDAQ:KTCC) and Location Based Technologies (OTCMKTS:LBAS)

Location Based Technologies (OTCMKTS:LBAS) and Key Tronic (NASDAQ:KTCC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

40.7% of Key Tronic shares are owned by institutional investors. 24.1% of Location Based Technologies shares are owned by insiders. Comparatively, 7.9% of Key Tronic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Location Based Technologies and Key Tronic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Location Based Technologies	N/A	N/A	N/A	N/A	N/A
Key Tronic	$467.87 million	0.06	-$8.32 million	($1.09)	-2.50

Location Based Technologies has higher earnings, but lower revenue than Key Tronic.

Analyst Recommendations

This is a breakdown of current recommendations for Location Based Technologies and Key Tronic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Location Based Technologies	0	0	0	0	0.00
Key Tronic	1	0	0	0	1.00

Volatility and Risk

Location Based Technologies has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Location Based Technologies and Key Tronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Location Based Technologies	N/A	N/A	N/A
Key Tronic	-2.69%	-8.43%	-3.06%

Summary

Location Based Technologies beats Key Tronic on 5 of the 8 factors compared between the two stocks.

About Location Based Technologies

Location Based Technologies, Inc. designs, develops, and sells commercial and consumer wearable global positioning system (GPS) tracking solutions based on worldwide GSM network. It offers consumer products under the PocketFinder brand, including PocketFinder, PocketFinder luggage, PocketFinder Pet, and PocketFinder Vehicle that displays information to users regarding device location, longitude, latitude, altitude, heading or direction, speed, and 60 days of location history; and set alerts that will trigger an email, text, or push notification to notify them when their device exceeds a pre-determined parameter, such as speed, battery life, or entry/exit of a geo-zone. The company's PocketFinder Personal/Pet or luggage devices include small devices that are ideal for tracking or locating any mobile asset, person, pet, or valuable item; and PocketFinder Vehicle tracker is to be hardwired to any powered asset, such as vehicle, watercraft, or mobile generator to locate and track a mobile assets. It also provides commercial products under the LBT brand, including LBT-886 and LBT Vehicle Tracker. The company's LBT-886 comprises location device that enables a user to locate and track any person or mobile asset; and LBT Vehicle Tracker provides tracking features with capabilities, such as temperature, light and humidity monitoring, engine on/off monitoring, and starter interrupt engine capability or lone worker emergency alerts. It markets and sells its commercial products to small/midsize businesses, enterprise businesses, and governmental organizations that need to track vehicles, mobile equipment, portable assets, and workers through online retailers, as well as through its pocketfinder.com Website. The company was founded in 2006 and is based in Irvine, California.

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.