Jabil Circuit (NYSE: JBL) and Analog Devices (NASDAQ:ADI) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares Jabil Circuit and Analog Devices’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jabil Circuit $19.06 billion 0.26 $1.33 billion $0.69 40.61
Analog Devices $4.57 billion 7.14 $1.83 billion $2.09 42.47

Analog Devices has higher revenue, but lower earnings than Jabil Circuit. Jabil Circuit is trading at a lower price-to-earnings ratio than Analog Devices, indicating that it is currently the more affordable of the two stocks.

Dividends

Jabil Circuit pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Analog Devices pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Jabil Circuit pays out 46.4% of its earnings in the form of a dividend. Analog Devices pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent recommendations for Jabil Circuit and Analog Devices, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jabil Circuit 2 7 3 0 2.08
Analog Devices 0 9 17 0 2.65

Jabil Circuit currently has a consensus target price of $29.70, indicating a potential upside of 6.00%. Analog Devices has a consensus target price of $93.83, indicating a potential upside of 5.70%. Given Jabil Circuit’s higher possible upside, equities research analysts plainly believe Jabil Circuit is more favorable than Analog Devices.

Insider and Institutional Ownership

92.9% of Jabil Circuit shares are held by institutional investors. Comparatively, 86.6% of Analog Devices shares are held by institutional investors. 2.9% of Jabil Circuit shares are held by insiders. Comparatively, 1.1% of Analog Devices shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Jabil Circuit has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Jabil Circuit and Analog Devices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jabil Circuit 0.68% 14.47% 3.28%
Analog Devices 14.77% 19.06% 8.78%

Summary

Analog Devices beats Jabil Circuit on 11 of the 16 factors compared between the two stocks.

Jabil Circuit Company Profile

Jabil Inc., formerly Jabil Circuit, Inc., provides electronic manufacturing services and solutions throughout the world. The Company operates in two segments, which include Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). The Company’s EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its large scale manufacturing infrastructure and the ability to serve a range of markets. Its DMS segment is focused on providing engineering solutions and a focus on material sciences and technologies. It provides electronic design, production and product management services to companies in the automotive, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, emerging growth, healthcare, industrial and energy, mobility, packaging, point of sale and printing industries.

Analog Devices Company Profile

Analog Devices, Inc. (Analog Devices) designs, manufactures and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software and subsystems. Its products include Analog Products, Converters, Amplifiers/Radio Frequency, Other Analog, Power Management and Reference, and Digital Signal Processing Products. The Company is a supplier of data converter products. The Company is a supplier of high-performance amplifiers. Its analog product line also includes products of high performance radio frequency (RF) ICs. The Company’s DSPs are used for high-speed numeric calculations. The Company offers its products for applications in various end markets, such as industrial, automotive, consumer and communications. The Company operates in the United States, Rest of North/South America, Europe, Japan and China.

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