Analyzing Riskgeorge In (OTCMKTS:RSKIA) and Nortech Systems (NASDAQ:NSYS)

Nortech Systems (NASDAQ:NSYS) and Riskgeorge In (OTCMKTS:RSKIA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nortech Systems and Riskgeorge In, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nortech Systems	1	0	0	0	1.00
Riskgeorge In	0	0	0	0	0.00

Earnings and Valuation

This table compares Nortech Systems and Riskgeorge In”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nortech Systems	$128.13 million	0.20	-$1.29 million	($0.95)	-9.68
Riskgeorge In	$22.54 million	3.86	$7.13 million	$1.70	10.47

Riskgeorge In has lower revenue, but higher earnings than Nortech Systems. Nortech Systems is trading at a lower price-to-earnings ratio than Riskgeorge In, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

3.1% of Nortech Systems shares are owned by institutional investors. Comparatively, 0.1% of Riskgeorge In shares are owned by institutional investors. 11.0% of Nortech Systems shares are owned by insiders. Comparatively, 59.8% of Riskgeorge In shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Nortech Systems has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Riskgeorge In has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Profitability

This table compares Nortech Systems and Riskgeorge In’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nortech Systems	-2.25%	-7.93%	-3.56%
Riskgeorge In	35.71%	14.41%	12.77%

Summary

Riskgeorge In beats Nortech Systems on 9 of the 12 factors compared between the two stocks.

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.

About Riskgeorge In

George Risk Industries, Inc. designs, manufactures, and sells various electronic components worldwide. It operates in three segments: security line products, cable and wiring tools (Labor Saving Devices – LSDI) products, and all other products. The company offers computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, security switches, and wire and cable installation tools, as well as door and window contact switches, environmental products, liquid detection sensors, and raceway wire covers. Its products are used for residential, commercial, industrial, and government installations. The company serves security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards. George Risk Industries, Inc. was incorporated in 1961 and is based in Kimball, Nebraska.