Critical Survey: Plexus (NASDAQ:PLXS) & Flex (NASDAQ:FLEX)

Plexus (NASDAQ:PLXS – Get Free Report) and Flex (NASDAQ:FLEX – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings for Plexus and Flex, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plexus 0 1 7 1 3.00
Flex 0 2 8 2 3.00

Plexus presently has a consensus price target of $276.86, suggesting a potential upside of 47.34%. Flex has a consensus price target of $131.78, suggesting a potential upside of 97.62%. Given Flex’s higher probable upside, analysts clearly believe Flex is more favorable than Plexus.

Valuation & Earnings

This table compares Plexus and Flex”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Plexus $4.96 billion 1.01 $202.49 million $7.42 25.32
Flex $27.91 billion 0.88 $880.00 million $2.77 24.07

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

Insider & Institutional Ownership

94.4% of Plexus shares are owned by institutional investors. Comparatively, 94.3% of Flex shares are owned by institutional investors. 1.8% of Plexus shares are owned by insiders. Comparatively, 0.6% of Flex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Plexus has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Profitability

This table compares Plexus and Flex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plexus 4.08% 13.34% 5.74%
Flex 3.35% 24.93% 5.63%

About Plexus

(Get Free Report)

Plexus Corp. provides electronic manufacturing services in the United States and internationally. It offers design, develop, supply chain, new product introduction, and manufacturing solutions, as well as sustaining services to companies in the healthcare/life sciences, industrial/commercial, aerospace/defense, and communications market sectors. The company was founded in 1979 and is headquartered in Neenah, Wisconsin.

About Flex

(Get Free Report)

Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.

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