Eltek (NASDAQ:ELTK – Get Free Report) and Hoya (OTCMKTS:HOCPY – 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 earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Insider & Institutional Ownership
64.6% of Eltek shares are owned by institutional investors. Comparatively, 0.1% of Hoya shares are owned by institutional investors. 72.0% of Eltek shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Eltek and Hoya’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eltek | -12.66% | -13.57% | -9.01% |
| Hoya | 27.58% | 25.78% | 20.41% |
Risk and Volatility
Eltek has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Hoya has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Dividends
Eltek pays an annual dividend of $0.19 per share and has a dividend yield of 2.9%. Hoya pays an annual dividend of $1.65 per share and has a dividend yield of 1.0%. Eltek pays out -20.9% of its earnings in the form of a dividend. Hoya pays out 32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eltek is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of current recommendations for Eltek and Hoya, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eltek | 1 | 0 | 0 | 0 | 1.00 |
| Hoya | 0 | 0 | 0 | 1 | 4.00 |
Valuation & Earnings
This table compares Eltek and Hoya”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eltek | $48.48 million | 0.90 | $830,000.00 | ($0.91) | -7.12 |
| Hoya | $5.88 billion | 9.46 | $1.58 billion | $5.04 | 33.00 |
Hoya has higher revenue and earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than Hoya, indicating that it is currently the more affordable of the two stocks.
Summary
Hoya beats Eltek on 11 of the 15 factors compared between the two stocks.
About Eltek
Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.
About Hoya
HOYA Corporation, a med-tech company, provides high-tech and medical products worldwide. It operates through three segments: Life Care, Telecommunication, and Other. The company offers life care products, including eyeglass and contact lenses; medical endoscopes; intraocular lenses; laparoscopic surgical instruments; automatic endoscope cleaning equipment; and other medical related products, such as prosthetic ceramic fillers and metallic implants for orthopedics. It also operates Eyecity, a specialty retailer of contact lenses. In addition, the company provides information technology products, such as mask blanks and photomasks for manufacturing semiconductor chips; glass disks for hard disk drives; and imaging products that include optical glasses/optical lenses, colored glass filters, and laser equipment/UV light resources. Further, it engages in the research, development, manufacture, and sale of photomasks for manufacturing flat panel displays. Additionally, the company offers ReadSpeaker, a speech synthesis software; and cloud services comprising Kinnosuke, a time and attendance management service, as well as Yonosuke, an electronic payslip service. HOYA Corporation was founded in 1941 and is headquartered in Tokyo, Japan.
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