CPS Technologies Corp. (CPSH) vs Richardson Electronics, Ltd. (RELL)

CPS Technologies Corp. and Richardson Electronics, Ltd. are both Electronic Components companies. Richardson Electronics, Ltd. is the larger, with a market value of $242.7M against $69.8M — 3.5× the size. CPS Technologies Corp. has negative trailing earnings, so its P/E is not meaningful; Richardson Electronics, Ltd. trades at 28.1×. CPS Technologies Corp. grew revenue faster over the last twelve months: 25.6% against 13.9%. Richardson Electronics, Ltd. has the higher net margin (3.57% vs −0.11%) and the higher return on invested capital (5.01% vs −2.60%). Across the 18 metrics below, Richardson Electronics, Ltd. leads on 14 and CPS Technologies Corp. on 4.

Valuation

Metric CPSH RELL Electronic Components median
P/E n/m 28.07 24.82
P/S 2.05 1.04 2.28
P/B 1.97 1.46 2.86
Price to free cash flow n/m 1,162.36 22.99
EV/EBITDA n/m 14.69 14.69
EV/Sales 1.47 0.88 2.38
Earnings yield (0.10%) 3.56% 2.68%
Free cash flow yield (4.17%) 0.09% 1.70%

Profitability

Metric CPSH RELL Electronic Components median
Gross margin 14.09% 32.20% 32.78%
Operating margin (1.87%) 4.44% 4.90%
Net margin (0.11%) 3.57% 3.46%
Free cash flow margin (8.57%) 0.09% 1.66%
Return on equity (0.15%) 5.19% 5.59%
Return on assets (0.12%) 4.14% 4.13%
Return on invested capital (2.60%) 5.01% 4.66%

Growth

Metric CPSH RELL Electronic Components median
Revenue growth (TTM) 25.56% 13.87% 13.94%
EPS growth (last fiscal year) 113.64% 650.00% 35.44%
Revenue growth, 5-year CAGR 9.32% 5.25% 6.70%
Net income growth, 5-year CAGR (14.28%) 30.99% 7.53%

Health

Metric CPSH RELL Electronic Components median
Debt to equity 0.00 0.00 0.11
Current ratio 7.14 4.65 2.50
Net debt to EBITDA (12.66) (3.10) 0.41

Dividend

Metric CPSH RELL Electronic Components median
Dividend yield — 1.78% 1.10%
Payout ratio — 0.52 0.28

Size

Metric CPSH RELL Electronic Components median
Market cap 69.79m 242.70m 1.16b

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