Head to Head Comparison: Ultralife (NASDAQ:ULBI) & CTS (NYSE:CTS)

CTS (NYSE:CTS) and Ultralife (NASDAQ:ULBI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares CTS and Ultralife”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTS	$531.52 million	2.29	$58.11 million	$1.97	21.28
Ultralife	$178.85 million	0.47	$6.31 million	$0.19	26.63

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

Volatility & Risk

CTS has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Ultralife has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Insider and Institutional Ownership

96.9% of CTS shares are owned by institutional investors. Comparatively, 30.7% of Ultralife shares are owned by institutional investors. 1.6% of CTS shares are owned by insiders. Comparatively, 40.0% of Ultralife shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CTS and Ultralife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTS	11.14%	11.92%	8.31%
Ultralife	1.79%	2.68%	1.74%

Analyst Recommendations

This is a summary of current recommendations and price targets for CTS and Ultralife, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTS	0	1	0	0	2.00
Ultralife	0	1	0	0	2.00

Summary

CTS beats Ultralife on 8 of the 11 factors compared between the two stocks.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.

About Ultralife

Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide. The company operates in two segments, Battery & Energy Products and Communications Systems. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium-ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables. The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. The company sells its products under the Ultralife, Ultralife HiRate, Ultralife Thin Cell, Ultralife Batteries, Lithium Power, McDowell Research, AMTITM, ABLETM, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE SEASAFE, Excell Battery Group, and Criterion Gauge brands through original equipment manufacturers, and industrial and defense supply distributors. In addition, it sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers. It serves government, defense, and commercial sectors. The company was incorporated in 1990 and is headquartered in Newark, New York.