Comparing SigmaTron International (NASDAQ:SGMA) and Tempo Automation (NASDAQ:TMPO)

SigmaTron International (NASDAQ:SGMA – Get Rating) and Tempo Automation (NASDAQ:TMPO – Get Rating) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

17.4% of SigmaTron International shares are owned by institutional investors. 9.5% of SigmaTron International shares are owned by insiders. Comparatively, 34.2% of Tempo Automation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares SigmaTron International and Tempo Automation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SigmaTron International	0.04%	5.78%	1.72%
Tempo Automation	N/A	N/A	-307.90%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SigmaTron International and Tempo Automation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SigmaTron International	0	0	0	0	N/A
Tempo Automation	0	1	2	0	2.67

Tempo Automation has a consensus price target of $3.00, suggesting a potential upside of 834.29%. Given Tempo Automation’s higher possible upside, analysts plainly believe Tempo Automation is more favorable than SigmaTron International.

Risk & Volatility

SigmaTron International has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Tempo Automation has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares SigmaTron International and Tempo Automation’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SigmaTron International	$407.16 million	0.05	$9.86 million	($0.12)	-28.75
Tempo Automation	$12.05 million	0.72	-$144.85 million	N/A	N/A

SigmaTron International has higher revenue and earnings than Tempo Automation.

Summary

SigmaTron International beats Tempo Automation on 7 of the 11 factors compared between the two stocks.

About SigmaTron International

(Get Rating)

SigmaTron International, Inc. engages in the provision of electronic manufacturing services. The firm also manufactures printed circuit board assemblies and assembled electronic products. It offers automatic and manual assembly and the testing of products, material sourcing and procurement, manufacturing and test engineering support, design services, warehousing and distribution service, and assistance in obtaining product approval from governmental and other regulatory bodies. The company was founded on November 16, 1993 and is headquartered in Elk Grove Village, IL.

About Tempo Automation

(Get Rating)

Tempo Automation Holdings, Inc. manufactures electronic products. The company designs and assembles printed circuit boards. It serves automotive, aviation and defense, consumer electronics, design firms, energy, industrial technology, medical device, semiconductor, and space industries. The company was founded in 2013 and is based in San Francisco, California.