Flextronics International (NASDAQ: FLEX) and Multi-Fineline Electronix (NASDAQ:MFLX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitabiliy, analyst recommendations, valuation, earnings and risk.

Risk and Volatility

Flextronics International has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Multi-Fineline Electronix has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Flextronics International and Multi-Fineline Electronix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Flextronics International $23.86 billion 0.37 $1.23 billion $0.59 27.97
Multi-Fineline Electronix N/A N/A N/A $1.02 22.64

Flextronics International has higher revenue and earnings than Multi-Fineline Electronix. Multi-Fineline Electronix is trading at a lower price-to-earnings ratio than Flextronics International, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

91.5% of Flextronics International shares are owned by institutional investors. 0.9% of Flextronics International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Flextronics International and Multi-Fineline Electronix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flextronics International 0 1 8 2 3.09
Multi-Fineline Electronix 0 1 0 0 2.00

Flextronics International presently has a consensus target price of $16.95, indicating a potential upside of 2.75%. Multi-Fineline Electronix has a consensus target price of $23.00, indicating a potential downside of 0.39%. Given Flextronics International’s stronger consensus rating and higher probable upside, research analysts plainly believe Flextronics International is more favorable than Multi-Fineline Electronix.

Profitability

This table compares Flextronics International and Multi-Fineline Electronix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flextronics International 1.34% 21.19% 4.44%
Multi-Fineline Electronix N/A N/A N/A

Summary

Flextronics International beats Multi-Fineline Electronix on 10 of the 12 factors compared between the two stocks.

About Flextronics International

Flex Ltd, formerly Flextronics International Ltd. provides design, engineering, manufacturing, and supply chain services and solutions. The Company designs, builds, ships and services packaged consumer electronics and industrial products for original equipment manufacturers (OEMs). Its segments include High Reliability Solutions (HRS), Consumer Technologies Group (CTG), Industrial and Emerging Industries (IEI) and Communications & Enterprise Compute (CEC). The HRS segment consists of its medical business, automotive business, and defense and aerospace businesses. The CTG segment includes its mobile devices business, consumer electronics business and high-volume computing business. The IEI segment consists of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting. The CEC segment includes radio access base stations, remote radio heads, and small cells for wireless infrastructure.

About Multi-Fineline Electronix

Multi-Fineline Electronix, Inc. is engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. The Company provides flexible printed circuits and value-added component assembly solutions to the electronics industry. The Company provides its solutions to original equipment manufacturers (OEMs) and to electronic manufacturing services (EMS) providers. The Company offers products in a range of sectors, including smartphones, tablets, computer/data storage, portable bar code scanners, personal computers, wearables and other consumer electronic devices. The Company’s products include flexible printed circuits, flexible printed circuit assemblies and mechanical integration of flexible printed circuit assemblies. The Company has facilities in Irvine, California; Suzhou, China, and Singapore. The Company operates in the United States, China, Singapore and Other, which includes Malaysia, Korea and the United Kingdom.

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