Flex (FLEX) and InvenSense (INVN) Critical Analysis
Flex (NASDAQ: FLEX) and InvenSense (NYSE:INVN) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Risk & Volatility
Flex has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, InvenSense has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500.
Insider & Institutional Ownership
94.8% of Flex shares are owned by institutional investors. Comparatively, 46.5% of InvenSense shares are owned by institutional investors. 0.8% of Flex shares are owned by insiders. Comparatively, 14.2% of InvenSense shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Flex and InvenSense’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Flex and InvenSense’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Flex||$23.99 billion||0.39||$1.22 billion||$0.63||28.11|
Flex has higher revenue and earnings than InvenSense. InvenSense is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Flex and InvenSense, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Flex currently has a consensus price target of $17.56, suggesting a potential downside of 0.83%. InvenSense has a consensus price target of $11.33, suggesting a potential downside of 12.75%. Given Flex’s stronger consensus rating and higher probable upside, equities analysts clearly believe Flex is more favorable than InvenSense.
Flex beats InvenSense on 9 of the 11 factors compared between the two stocks.
Flex Company Profile
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.
InvenSense Company Profile
InvenSense, Inc. (InvenSense) is engaged in designing, developing, marketing and selling of sensor system-on-chip (SoC), including accelerometers, gyroscopes and microphones for the mobile, wearable, smart home, gaming, industrial and automotive market segments. The Company delivers solutions based on its motion and sound technology; focused on solutions, such as smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. Its motion solutions detect and track an object’s motion in three-dimensional space.
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