Critical Survey: Key Tronic (NASDAQ:KTCC) versus The Coretec Group (OTCMKTS:CRTG)

Key Tronic (NASDAQ:KTCC) and The Coretec Group (OTCMKTS:CRTG) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Key Tronic and The Coretec 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
The Coretec Group	0	0	0	0	0.00

Valuation & Earnings

This table compares Key Tronic and The Coretec Group”s top-line 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	0.06	-$8.32 million	($1.09)	-2.43
The Coretec Group	N/A	N/A	-$2.31 million	N/A	N/A

The Coretec Group has lower revenue, but higher earnings than Key Tronic.

Profitability

This table compares Key Tronic and The Coretec Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-2.69%	-8.43%	-3.06%
The Coretec Group	N/A	N/A	N/A

Risk & Volatility

Key Tronic has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, The Coretec Group has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Institutional and Insider Ownership

40.7% of Key Tronic shares are held by institutional investors. 7.9% of Key Tronic shares are held by company insiders. Comparatively, 63.1% of The Coretec Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

The Coretec Group beats Key Tronic on 6 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 The Coretec Group

The Coretec Group Inc. engages in the development of silicon anode active materials for lithium-ion batteries and cyclohexasilane for electric vehicles, cleantech, and tech applications. The company was founded in 2002 and is headquartered in Ann Arbor, Michigan.