Key Tronic Corporation (NASDAQ: KTCC) and HP (NYSE:HPQ) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Dividends

HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.6%. Key Tronic Corporation does not pay a dividend. HP pays out 38.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

41.6% of Key Tronic Corporation shares are held by institutional investors. Comparatively, 79.2% of HP shares are held by institutional investors. 7.2% of Key Tronic Corporation shares are held by insiders. Comparatively, 0.6% of HP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Key Tronic Corporation has a beta of -0.08, indicating that its stock price is 108% less volatile than the S&P 500. Comparatively, HP has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Valuation & Earnings

This table compares Key Tronic Corporation and HP’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Key Tronic Corporation $467.80 million 0.16 $16.78 million $0.51 13.73
HP $50.64 billion 0.67 $4.20 billion $1.38 14.68

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

Profitability

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

Net Margins Return on Equity Return on Assets
Key Tronic Corporation 1.20% 5.08% 2.41%
HP 4.66% -64.93% 9.10%

Analyst Recommendations

This is a summary of recent ratings and price targets for Key Tronic Corporation and HP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Tronic Corporation 0 0 1 0 3.00
HP 0 8 13 0 2.62

Key Tronic Corporation presently has a consensus price target of $9.25, suggesting a potential upside of 32.14%. HP has a consensus price target of $20.58, suggesting a potential upside of 1.55%. Given Key Tronic Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Key Tronic Corporation is more favorable than HP.

Summary

HP beats Key Tronic Corporation on 11 of the 16 factors compared between the two stocks.

Key Tronic Corporation Company Profile

Key Tronic Corporation, doing business as KeyTronicEMS Co., is engaged in contract manufacturing for a range of products. The Company provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers (OEMs) of a range of products. The Company provides engineering services, procurement and distribution, materials management, manufacturing and assembly services, in-house testing, and customer service. The Company provides EMS services, such as product design, surface mount technologies (SMT) and pin through hole capability for printed circuit board assembly (PCBA), tool making, precision plastic molding, sheet metal fabrication, liquid injection molding, complex assembly, automated tape winding, prototype design and full product assembly. The Company’s manufacturing operations are located in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; Harrodsburg, Kentucky, and foreign manufacturing operations in Juarez, Mexico, and Shanghai, China.

HP Company Profile

HP Inc. is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment provides Commercial personal computers (PCs), Consumer PCs, workstations, thin clients, Commercial tablets and mobility devices, retail point-of-sale systems, displays and other accessories, software, support and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions and services, as well as scanning devices. The Corporate Investments segment includes the operations of HP Labs and certain business incubation projects.

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