Elron Electronic Industries (OTCMKTS:ELRNF) and Stellus Capital Investment (NYSE:SCM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Risk & Volatility
Elron Electronic Industries has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Stellus Capital Investment has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Earnings and Valuation
This table compares Elron Electronic Industries and Stellus Capital Investment's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Elron Electronic Industries | $3.18 million | 35.77 | $-22,380,000.00 | N/A | N/A |
Stellus Capital Investment | $58.91 million | 4.50 | $26.44 million | $1.23 | 11.06 |
Stellus Capital Investment has higher revenue and earnings than Elron Electronic Industries.
Insider and Institutional Ownership
15.6% of Stellus Capital Investment shares are held by institutional investors. 5.4% of Stellus Capital Investment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Elron Electronic Industries and Stellus Capital Investment's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Elron Electronic Industries | -189.82% | -19.61% | -17.82% |
Stellus Capital Investment | 8.91% | 9.70% | 3.74% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Elron Electronic Industries and Stellus Capital Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Elron Electronic Industries | 0 | 0 | 0 | 0 | N/A |
Stellus Capital Investment | 0 | 1 | 2 | 0 | 2.67 |
Stellus Capital Investment has a consensus target price of $11.00, suggesting a potential downside of 19.12%. Given Stellus Capital Investment's higher probable upside, analysts plainly believe Stellus Capital Investment is more favorable than Elron Electronic Industries.
Summary
Stellus Capital Investment beats Elron Electronic Industries on 11 of the 12 factors compared between the two stocks.