Analyzing Diamond Eagle Acquisition (NYSE:VRT) and Nortech Systems (NYSE:NSYS)
Diamond Eagle Acquisition (NYSE:VRT) and Nortech Systems (NASDAQ:NSYS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Diamond Eagle Acquisition and Nortech Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diamond Eagle Acquisition||N/A||N/A||$4.39 million||$0.05||262.20|
|Nortech Systems||$116.33 million||0.09||-$1.23 million||N/A||N/A|
Insider and Institutional Ownership
79.5% of Diamond Eagle Acquisition shares are held by institutional investors. Comparatively, 2.1% of Nortech Systems shares are held by institutional investors. 4.5% of Nortech Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Diamond Eagle Acquisition and Nortech Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamond Eagle Acquisition||N/A||-33.10%||-1.70%|
This is a summary of recent recommendations for Diamond Eagle Acquisition and Nortech Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Eagle Acquisition||0||0||3||0||3.00|
Diamond Eagle Acquisition presently has a consensus target price of $14.50, suggesting a potential upside of 10.60%. Given Diamond Eagle Acquisition’s higher probable upside, equities analysts plainly believe Diamond Eagle Acquisition is more favorable than Nortech Systems.
Risk and Volatility
Diamond Eagle Acquisition has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Nortech Systems has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Diamond Eagle Acquisition beats Nortech Systems on 6 of the 11 factors compared between the two stocks.
Diamond Eagle Acquisition Company Profile
GS Acquisition Holdings Corp (NYSE: GSAH) is a special purpose acquisition company formed for the purpose of effecting merger, stock purchase or similar business combination with one or more businesses. The company is sponsored by an affiliate of The Goldman Sachs Group, Inc. and David M. Cote. The company’s strategy is to identify and complete its initial business combination with a business in the diversified industrial sector, which includes, among others, Aerospace & Defense, Industrial Services, Chemicals, Home & Building Products, Building & Construction, Capital Goods, Packaging and Supply Chain, that stands to benefit from Mr. Cote’s experience and operating capabilities. In June 2018, GS Acquisition Holdings completed its initial public offer, raising $690 million from investors.
Nortech Systems Company Profile
Nortech Systems Incorporated operates as an electronic manufacturing services company in the United States, Mexico, and China. The company provides value-added engineering, technical and manufacturing, and support services, including project management, designing, testing, prototyping, supply chain management, and post-market services. It offers manufacturing and engineering services for medical devices, as well as printed circuit board, wire and cable, and higher level electromechanical assemblies. The company also provides repair services. It serves original equipment manufacturers in the aerospace and defense, medical, and industrial markets through business development teams and independent manufacturers' representatives. The company was founded in 1981 and is headquartered in Maple Grove, Minnesota.
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