Analyzing Sanmina (NASDAQ:SANM) and Teledyne Technologies (NYSE:TDY)

Teledyne Technologies (NYSE:TDYGet Free Report) and Sanmina (NASDAQ:SANMGet Free Report) are both large-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

91.6% of Teledyne Technologies shares are held by institutional investors. Comparatively, 92.7% of Sanmina shares are held by institutional investors. 1.4% of Teledyne Technologies shares are held by company insiders. Comparatively, 3.1% of Sanmina shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Teledyne Technologies and Sanmina, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teledyne Technologies 0 4 3 1 2.62
Sanmina 0 2 2 1 2.80

Teledyne Technologies presently has a consensus target price of $723.33, suggesting a potential upside of 16.50%. Sanmina has a consensus target price of $198.33, suggesting a potential downside of 9.54%. Given Teledyne Technologies’ higher probable upside, analysts clearly believe Teledyne Technologies is more favorable than Sanmina.

Risk & Volatility

Teledyne Technologies has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Sanmina has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Profitability

This table compares Teledyne Technologies and Sanmina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teledyne Technologies 15.29% 10.56% 7.34%
Sanmina 2.41% 19.08% 5.75%

Valuation and Earnings

This table compares Teledyne Technologies and Sanmina”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teledyne Technologies $6.12 billion 4.71 $894.80 million $20.71 29.98
Sanmina $8.13 billion 1.45 $245.89 million $5.59 39.22

Teledyne Technologies has higher earnings, but lower revenue than Sanmina. Teledyne Technologies is trading at a lower price-to-earnings ratio than Sanmina, indicating that it is currently the more affordable of the two stocks.

About Teledyne Technologies

(Get Free Report)

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

About Sanmina

(Get Free Report)

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems. In addition, the company provides components, such as printed circuit boards, backplane and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts; memory solutions; storage platforms; optical, radio frequency, and microelectronic solutions; defense and aerospace product, design, manufacturing, repair, and refurbishment services; and cloud-based manufacturing execution software. It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions. Sanmina Corporation was incorporated in 1980 and is headquartered in San Jose, California.

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