Zebra Technologies Corporation (NASDAQ: ZBRA) and Flextronics International (NASDAQ:FLEX) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

89.9% of Zebra Technologies Corporation shares are held by institutional investors. Comparatively, 94.6% of Flextronics International shares are held by institutional investors. 2.5% of Zebra Technologies Corporation shares are held by company insiders. Comparatively, 0.8% of Flextronics International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Zebra Technologies Corporation and Flextronics International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zebra Technologies Corporation $3.61 billion 1.64 $613.00 million ($0.79) -141.09
Flextronics International $23.99 billion 0.39 $1.22 billion $0.63 28.24

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

Analyst Ratings

This is a summary of current ratings and price targets for Zebra Technologies Corporation and Flextronics International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zebra Technologies Corporation 0 4 4 0 2.50
Flextronics International 0 2 7 0 2.78

Zebra Technologies Corporation presently has a consensus price target of $101.17, indicating a potential downside of 9.24%. Flextronics International has a consensus price target of $17.56, indicating a potential downside of 1.28%. Given Flextronics International’s stronger consensus rating and higher probable upside, analysts plainly believe Flextronics International is more favorable than Zebra Technologies Corporation.

Profitability

This table compares Zebra Technologies Corporation and Flextronics International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zebra Technologies Corporation -1.14% 38.88% 6.68%
Flextronics International 1.41% 20.46% 4.30%

Risk & Volatility

Zebra Technologies Corporation has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Flextronics International has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Summary

Flextronics International beats Zebra Technologies Corporation on 8 of the 14 factors compared between the two stocks.

Zebra Technologies Corporation Company Profile

Zebra Technologies Corporation designs, manufactures and sells a range of automatic identification and data capture (AIDC) products. The Company’s AIDC products include mobile computers, barcode scanners, radio frequency identification (RFID) readers, wireless local area network (WLAN) products, specialty printers for barcode labeling and personal identification, real-time location systems (RTLS), related accessories and supplies, such as self-adhesive labels and other consumables, and utilities and application software. The Company operates through two segments: Enterprise, which comprises its mobile computing, data capture, RFID and WLAN products, and services, and Legacy Zebra, which comprises barcode and card printing, location solutions, supplies and services. The Company’s products are used in automatic identification (auto ID), data collection and personal identification applications.

Flextronics International 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.

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