nVent Electric (NYSE:NVT – Get Free Report) and Nortech Systems (NASDAQ:NSYS – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Earnings & Valuation
This table compares nVent Electric and Nortech Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nVent Electric | $3.01 billion | 6.02 | $331.80 million | $3.63 | 31.00 |
| Nortech Systems | $117.60 million | 0.22 | -$1.29 million | ($1.17) | -8.01 |
Institutional and Insider Ownership
90.1% of nVent Electric shares are owned by institutional investors. Comparatively, 3.0% of Nortech Systems shares are owned by institutional investors. 2.5% of nVent Electric shares are owned by insiders. Comparatively, 11.0% of Nortech Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for nVent Electric and Nortech Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nVent Electric | 0 | 1 | 7 | 1 | 3.00 |
| Nortech Systems | 1 | 0 | 0 | 0 | 1.00 |
nVent Electric presently has a consensus target price of $121.14, indicating a potential upside of 7.67%. Given nVent Electric’s stronger consensus rating and higher probable upside, analysts clearly believe nVent Electric is more favorable than Nortech Systems.
Profitability
This table compares nVent Electric and Nortech Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nVent Electric | 16.83% | 14.29% | 7.42% |
| Nortech Systems | -2.74% | -9.55% | -4.33% |
Risk and Volatility
nVent Electric has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Nortech Systems has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.
Summary
nVent Electric beats Nortech Systems on 14 of the 15 factors compared between the two stocks.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
About Nortech Systems
Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.
Receive News & Ratings for nVent Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for nVent Electric and related companies with MarketBeat.com's FREE daily email newsletter.
