Head to Head Review: Nortek (NASDAQ:NTK) vs. ZAGG (ZAGG)

Nortek (NASDAQ: NTK) and ZAGG (NASDAQ:ZAGG) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Risk and Volatility

Nortek has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, ZAGG has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Nortek and ZAGG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nortek 2.69% 271.83% 3.41%
ZAGG -3.12% 5.34% 2.12%

Earnings and Valuation

This table compares Nortek and ZAGG’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nortek N/A N/A N/A $0.64 134.28
ZAGG $447.76 million 0.65 $30.91 million ($0.50) -20.90

ZAGG has higher revenue and earnings than Nortek. ZAGG is trading at a lower price-to-earnings ratio than Nortek, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

77.5% of ZAGG shares are held by institutional investors. 3.5% of ZAGG shares are held 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nortek and ZAGG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nortek 0 0 0 0 N/A
ZAGG 0 1 2 0 2.67

ZAGG has a consensus target price of $9.67, suggesting a potential downside of 7.50%. Given ZAGG’s higher probable upside, analysts plainly believe ZAGG is more favorable than Nortek.

About Nortek

Nortek, Inc. (Nortek) is a diversified company delivering technology-driven products and solutions for lifestyle improvement at home and at work. The Company’s segments include the Air Quality and Home Solutions (AQH), which manufactures, markets and distributes room and whole house ventilation products; the Security and Control Solutions (SCS), which manufactures and distributes an array of products for residential applications; the Ergonomic and Productivity Solutions (ERG), which includes computer workstations with ergonomic features; the Residential and Commercial HVAC (RCH), which manufactures and sells split-system and packaged air conditioners; the Custom and Commercial Air Solutions (CAS), which designs, manufactures and sells custom heating, ventilation and air conditioning products and systems, and Audio, Video and Control Solutions (AVC), which manufactures and markets an array of products and solutions primarily for the residential audio, video automation and control.

About ZAGG

ZAGG Inc (ZAGG) designs, produces and distributes professional product solutions for mobile devices, including screen protection (glass and film), keyboards for tablet computers and mobile devices, keyboard cases, earbuds, mobile power solutions, cables, and cases under the ZAGG and InvisibleShield brands. In addition, the Company designs, produces and distributes earbuds, headphones, mobile power solutions, Bluetooth speakers, cases and cables for mobile devices under the iFrogz brand in the fashion and youth oriented lifestyle sector. The Company designs product solutions for users of mobile devices, and sells these products to consumers through global distribution partners and online. The Company offers products for various market segments of handheld electronic devices, including smartphones, tablets, notebook computers, laptops, gaming devices, global positioning system (GPS) devices, watch faces, and similar devices and surfaces.

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