Nortech Systems (NASDAQ:NSYS) and Diamond Eagle Acquisition (NYSE:VRT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
2.1% of Nortech Systems shares are held by institutional investors. Comparatively, 79.5% of Diamond Eagle Acquisition shares are held by institutional investors. 4.5% of Nortech Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Nortech Systems and Diamond Eagle Acquisition, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Eagle Acquisition||0||0||3||0||3.00|
Diamond Eagle Acquisition has a consensus target price of $14.50, suggesting a potential upside of 10.60%. Given Diamond Eagle Acquisition’s higher probable upside, analysts clearly believe Diamond Eagle Acquisition is more favorable than Nortech Systems.
This table compares Nortech Systems and Diamond Eagle Acquisition’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamond Eagle Acquisition||N/A||-33.10%||-1.70%|
Risk & Volatility
Nortech Systems has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Diamond Eagle Acquisition has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nortech Systems and Diamond Eagle Acquisition’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nortech Systems||$116.33 million||0.09||-$1.23 million||N/A||N/A|
|Diamond Eagle Acquisition||N/A||N/A||$4.39 million||$0.05||262.20|
Diamond Eagle Acquisition has lower revenue, but higher earnings than Nortech Systems.
Diamond Eagle Acquisition beats Nortech Systems on 6 of the 11 factors compared between the two stocks.
Nortech Systems Company Profile
Nortech Systems Incorporated operates as an electronic manufacturing services company in the United States, Mexico, and China. The company provides value-added engineering, technical and manufacturing, and support services, including project management, designing, testing, prototyping, supply chain management, and post-market services. It offers manufacturing and engineering services for medical devices, as well as printed circuit board, wire and cable, and higher level electromechanical assemblies. The company also provides repair services. It serves original equipment manufacturers in the aerospace and defense, medical, and industrial markets through business development teams and independent manufacturers' representatives. The company was founded in 1981 and is headquartered in Maple Grove, Minnesota.
Diamond Eagle Acquisition Company Profile
GS Acquisition Holdings Corp (NYSE: GSAH) is a special purpose acquisition company formed for the purpose of effecting merger, stock purchase or similar business combination with one or more businesses. The company is sponsored by an affiliate of The Goldman Sachs Group, Inc. and David M. Cote. The company’s strategy is to identify and complete its initial business combination with a business in the diversified industrial sector, which includes, among others, Aerospace & Defense, Industrial Services, Chemicals, Home & Building Products, Building & Construction, Capital Goods, Packaging and Supply Chain, that stands to benefit from Mr. Cote’s experience and operating capabilities. In June 2018, GS Acquisition Holdings completed its initial public offer, raising $690 million from investors.
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