Comparing Plexus Corp. (PLXS) & NVIDIA Corporation (NVDA)

NVIDIA Corporation (NASDAQ: NVDA) and Plexus Corp. (NASDAQ:PLXS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitabiliy, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NVIDIA Corporation and Plexus Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVIDIA Corporation 6 12 18 1 2.38
Plexus Corp. 0 4 1 0 2.20

NVIDIA Corporation presently has a consensus price target of $130.58, suggesting a potential downside of 20.50%. Plexus Corp. has a consensus price target of $58.75, suggesting a potential upside of 10.29%. Given Plexus Corp.’s higher possible upside, analysts plainly believe Plexus Corp. is more favorable than NVIDIA Corporation.

Profitability

This table compares NVIDIA Corporation and Plexus Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVIDIA Corporation 25.95% 36.40% 21.74%
Plexus Corp. 4.01% 11.10% 5.79%

Institutional & Insider Ownership

68.8% of NVIDIA Corporation shares are owned by institutional investors. Comparatively, 93.6% of Plexus Corp. shares are owned by institutional investors. 5.2% of NVIDIA Corporation shares are owned by company insiders. Comparatively, 4.3% of Plexus Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares NVIDIA Corporation and Plexus Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NVIDIA Corporation $7.54 billion 12.96 $2.44 billion $3.01 54.57
Plexus Corp. $2.56 billion 0.70 $178.41 million $2.98 17.88

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

Volatility and Risk

NVIDIA Corporation has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Plexus Corp. has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Dividends

NVIDIA Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.3%. Plexus Corp. does not pay a dividend. NVIDIA Corporation pays out 18.6% of its earnings in the form of a dividend.

Summary

NVIDIA Corporation beats Plexus Corp. on 14 of the 17 factors compared between the two stocks.

About NVIDIA Corporation

Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.

About Plexus Corp.

Plexus Corp. (Plexus) and its subsidiaries are engaged in the electronic manufacturing services (EMS) industry. The Company delivers end-to-end solutions for customers in the Americas (AMER), Europe, Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions. The Company’s segments are AMER, APAC and EMEA. The Company’s customer-focused solutions model integrates product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining solutions. The Company delivers solutions to its customers through its product realization value stream. The Company provides a range of aftermarket services, including complex repair, refurbishment and product support for products it manufactures. The Company provides customer service to approximately 140 branded product companies in the healthcare/life sciences, industrial/commercial, networking/communications and defense/security/aerospace market sectors.

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