Head-To-Head Analysis: Erayak Power Solution Group (NASDAQ:RAYA) vs. Key Tronic (NASDAQ:KTCC)

Key Tronic (NASDAQ:KTCC) and Erayak Power Solution Group (NASDAQ:RAYA) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Valuation and Earnings

This table compares Key Tronic and Erayak Power Solution Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.08	-$8.32 million	($0.78)	-4.32
Erayak Power Solution Group	$30.30 million	0.11	-$1.12 million	N/A	N/A

Erayak Power Solution Group has lower revenue, but higher earnings than Key Tronic.

Risk and Volatility

Key Tronic has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Erayak Power Solution Group has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Profitability

This table compares Key Tronic and Erayak Power Solution Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-1.78%	-6.22%	-2.25%
Erayak Power Solution Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Key Tronic and Erayak Power Solution Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
Erayak Power Solution Group	1	0	0	0	1.00

Insider & Institutional Ownership

40.7% of Key Tronic shares are owned by institutional investors. Comparatively, 0.3% of Erayak Power Solution Group shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Erayak Power Solution Group beats Key Tronic on 5 of the 9 factors compared between the two stocks.

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.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.