ePlus (NASDAQ:PLUS – Get Free Report) and CPS Technologies (NASDAQ:CPSH – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Earnings & Valuation
This table compares ePlus and CPS Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ePlus | $2.44 billion | 0.93 | $132.64 million | $4.57 | 19.12 |
| CPS Technologies | $32.35 million | 2.63 | $420,000.00 | ($0.01) | -439.00 |
Risk & Volatility
ePlus has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, CPS Technologies has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500.
Profitability
This table compares ePlus and CPS Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ePlus | 4.91% | 11.51% | 6.73% |
| CPS Technologies | -0.11% | -0.14% | -0.12% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for ePlus and CPS Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ePlus | 0 | 2 | 0 | 0 | 2.00 |
| CPS Technologies | 1 | 1 | 1 | 0 | 2.00 |
CPS Technologies has a consensus target price of $6.00, indicating a potential upside of 36.67%. Given CPS Technologies’ higher possible upside, analysts plainly believe CPS Technologies is more favorable than ePlus.
Insider & Institutional Ownership
93.8% of ePlus shares are owned by institutional investors. Comparatively, 11.2% of CPS Technologies shares are owned by institutional investors. 2.2% of ePlus shares are owned by insiders. Comparatively, 13.2% of CPS Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
ePlus beats CPS Technologies on 8 of the 13 factors compared between the two stocks.
About ePlus
ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize their IT environment and supply chain processes in the United States and internationally. It operates through two segments, Technology and Financing. The Technology segment offers hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services; managed services or infrastructure and cloud; and enhanced maintenance support, service desk, storage-as-a-service, cloud hosted and managed, and managed security services; and professional, staff augmentation, cloud consulting, consulting, and security services. The Financing segment engages in financing arrangements, such as sales-type and operating leases; loans and consumption-based financing arrangements; and underwriting, management, and disposal of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, and risk and asset management. This segment primarily finances IT, communication-related, and medical equipment; and industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment directly, as well as through vendors. The company serves commercial entities, state and local governments, government contractors, healthcare, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.
About CPS Technologies
CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.
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