Comparing Flextronics International (FLEX) & Avnet (AVT)
Flextronics International (NASDAQ: FLEX) and Avnet (NYSE:AVT) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.
Risk & Volatility
Flextronics International has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Avnet has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
This is a breakdown of recent ratings for Flextronics International and Avnet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Flextronics International presently has a consensus price target of $19.50, suggesting a potential upside of 6.73%. Avnet has a consensus price target of $39.50, suggesting a potential upside of 0.74%. Given Flextronics International’s stronger consensus rating and higher probable upside, analysts plainly believe Flextronics International is more favorable than Avnet.
This table compares Flextronics International and Avnet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Flextronics International and Avnet’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Flextronics International||$23.86 billion||0.40||$319.56 million||$1.01||18.09|
|Avnet||$17.44 billion||0.27||$525.27 million||$2.00||19.61|
Avnet has higher revenue, but lower earnings than Flextronics International. Flextronics International is trading at a lower price-to-earnings ratio than Avnet, indicating that it is currently the more affordable of the two stocks.
Avnet pays an annual dividend of $0.72 per share and has a dividend yield of 1.8%. Flextronics International does not pay a dividend. Avnet pays out 36.0% of its earnings in the form of a dividend. Avnet has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
94.5% of Flextronics International shares are held by institutional investors. Comparatively, 97.6% of Avnet shares are held by institutional investors. 0.8% of Flextronics International shares are held by insiders. Comparatively, 1.7% of Avnet shares are held by 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.
Flextronics International beats Avnet on 9 of the 17 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.
Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other services.
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