Flextronics International (FLEX) & Taiwan Semiconductor Manufacturing (TSM) Financial Comparison
Flextronics International (NASDAQ: FLEX) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Volatility & Risk
Flextronics International has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
This table compares Flextronics International and Taiwan Semiconductor Manufacturing’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taiwan Semiconductor Manufacturing||36.11%||25.61%||18.51%|
Insider and Institutional Ownership
94.9% of Flextronics International shares are owned by institutional investors. Comparatively, 19.4% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 0.8% of Flextronics International shares are owned by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Flextronics International and Taiwan Semiconductor Manufacturing, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taiwan Semiconductor Manufacturing||0||3||1||0||2.25|
Flextronics International currently has a consensus target price of $17.39, suggesting a potential upside of 2.89%. Taiwan Semiconductor Manufacturing has a consensus target price of $27.00, suggesting a potential downside of 29.45%. Given Flextronics International’s stronger consensus rating and higher possible upside, research analysts clearly believe Flextronics International is more favorable than Taiwan Semiconductor Manufacturing.
Taiwan Semiconductor Manufacturing pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Flextronics International does not pay a dividend. Taiwan Semiconductor Manufacturing pays out 42.6% of its earnings in the form of a dividend. Taiwan Semiconductor Manufacturing has raised its dividend for 2 consecutive years.
Earnings and Valuation
This table compares Flextronics International and Taiwan Semiconductor Manufacturing’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Flextronics International||$23.99 billion||0.38||$1.22 billion||$0.63||26.83|
|Taiwan Semiconductor Manufacturing||$32.32 billion||6.14||$20.86 billion||$2.16||17.72|
Taiwan Semiconductor Manufacturing has higher revenue and earnings than Flextronics International. Taiwan Semiconductor Manufacturing is trading at a lower price-to-earnings ratio than Flextronics International, indicating that it is currently the more affordable of the two stocks.
Taiwan Semiconductor Manufacturing beats Flextronics International on 11 of the 18 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 Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a semiconductor foundry. The Company is engaged in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. It operates through foundry segment. The foundry segment is engaged in manufacturing, selling, packaging, testing and computer-aided design of integrated circuits (IC) and other semiconductor devices and the manufacturing of masks. It operates three 12-inch wafer fabs, four eight-inch wafer fabs, one six-inch wafer fab (fab 2) and two backend fabs (advanced backend fab 1 and 2). It also manages two eight-inch fabs at its subsidiaries, WaferTech, LLC in the United States and TSMC China Company Limited. Its exploratory work focuses on transistors and technologies, such as three dimensional (3D) structures, strained-layer complementary metal-oxide semiconductor (CMOS), high-mobility materials and 3D IC devices.
Receive News & Ratings for Flextronics International Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Flextronics International Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.