AXT (AXTI) versus Jabil (JBL) Financial Review

AXT (NASDAQ: AXTI) and Jabil (NYSE:JBL) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares AXT and Jabil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AXT 9.96% 5.67% 5.04%
Jabil 0.54% 12.95% 2.86%

Analyst Ratings

This is a summary of recent recommendations and price targets for AXT and Jabil, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AXT 0 1 3 0 2.75
Jabil 2 5 4 0 2.18

AXT currently has a consensus price target of $9.94, indicating a potential upside of 23.45%. Jabil has a consensus price target of $31.78, indicating a potential upside of 23.03%. Given AXT’s stronger consensus rating and higher possible upside, analysts clearly believe AXT is more favorable than Jabil.

Earnings & Valuation

This table compares AXT and Jabil’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AXT $81.35 million 3.85 $5.63 million $0.24 33.54
Jabil $19.06 billion 0.24 $129.09 million $0.57 45.32

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

Dividends

Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. AXT does not pay a dividend. Jabil pays out 56.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

58.9% of AXT shares are owned by institutional investors. Comparatively, 97.9% of Jabil shares are owned by institutional investors. 6.9% of AXT shares are owned by company insiders. Comparatively, 2.6% of Jabil shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

AXT has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Jabil has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Summary

AXT beats Jabil on 9 of the 16 factors compared between the two stocks.

About AXT

AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.

About Jabil

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.

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