Eltek (NASDAQ:ELTK) & Littelfuse (NASDAQ:LFUS) Critical Analysis

Littelfuse (NASDAQ:LFUSGet Free Report) and Eltek (NASDAQ:ELTKGet Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Littelfuse -0.31% 13.02% 8.32%
Eltek -12.66% -13.57% -9.01%

Analyst Ratings

This is a summary of current recommendations and price targets for Littelfuse and Eltek, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Littelfuse 0 2 4 0 2.67
Eltek 1 0 0 0 1.00

Littelfuse presently has a consensus target price of $465.83, suggesting a potential upside of 13.46%. Given Littelfuse’s stronger consensus rating and higher probable upside, research analysts clearly believe Littelfuse is more favorable than Eltek.

Institutional and Insider Ownership

96.1% of Littelfuse shares are held by institutional investors. Comparatively, 64.6% of Eltek shares are held by institutional investors. 1.0% of Littelfuse shares are held by company insiders. Comparatively, 72.0% of Eltek shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Littelfuse has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Dividends

Littelfuse pays an annual dividend of $3.20 per share and has a dividend yield of 0.8%. Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 2.4%. Littelfuse pays out -640.0% of its earnings in the form of a dividend. Eltek pays out -20.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Littelfuse has raised its dividend for 15 consecutive years.

Earnings and Valuation

This table compares Littelfuse and Eltek”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Littelfuse $2.39 billion 4.37 -$71.70 million ($0.50) -821.15
Eltek $48.48 million 1.12 $830,000.00 ($0.91) -8.88

Eltek has lower revenue, but higher earnings than Littelfuse. Littelfuse is trading at a lower price-to-earnings ratio than Eltek, indicating that it is currently the more affordable of the two stocks.

Summary

Littelfuse beats Eltek on 13 of the 17 factors compared between the two stocks.

About Littelfuse

(Get Free Report)

Littelfuse, Inc. designs, manufactures, and sells electronic components, modules, and subassemblies in the Americas, Asia-Pacific, and Europe. The company operates through Electronic, Transportation, and Industrial segments. The Electronics segment offers fuses and fuse accessories, positive temperature coefficient resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge suppressors, varistors, reed switch based magnetic sensing products, and gas discharge tubes; and discrete transient voltage suppressor (TVS) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field-effect transistors and diodes, and insulated gate bipolar transistors. This segment serves industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers, telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics markets. The Transportation segment provides blade, resettable, and high-current and high-voltage fuses, as well as battery cable protectors; fuses, switches, relays, circuit breakers, and power distribution modules; and sensor products. This segment serves heavy-duty truck, construction, agriculture, material handling, and marine. The Industrial segment offers industrial fuses, protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, arc fault detection devices, and temperature sensors for use in renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining, and factory automation. It sells its products through distributors, direct sales force, and manufacturers' representatives. Littelfuse, Inc. was founded in 1927 and is headquartered in Chicago, Illinois.

About Eltek

(Get Free Report)

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.

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