Critical Survey: Flux Power (NASDAQ:FLUX) and Flex (NASDAQ:FLEX)

Flex (NASDAQ:FLEX) and Flux Power (NASDAQ:FLUX) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Institutional and Insider Ownership

94.3% of Flex shares are held by institutional investors. Comparatively, 38.0% of Flux Power shares are held by institutional investors. 0.6% of Flex shares are held by insiders. Comparatively, 26.0% of Flux Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Flex and Flux Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex	3.33%	20.86%	5.57%
Flux Power	-11.92%	N/A	-20.04%

Earnings and Valuation

This table compares Flex and Flux Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$25.81 billion	0.91	$838.00 million	$2.26	28.18
Flux Power	$66.43 million	0.46	-$6.67 million	($0.45)	-3.16

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

Analyst Recommendations

This is a summary of recent recommendations for Flex and Flux Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	3	7	0	2.70
Flux Power	2	0	3	0	2.20

Flex presently has a consensus price target of $65.88, indicating a potential upside of 3.45%. Flux Power has a consensus price target of $6.00, indicating a potential upside of 322.54%. Given Flux Power’s higher probable upside, analysts plainly believe Flux Power is more favorable than Flex.

Volatility & Risk

Flex has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Flux Power has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Summary

Flex beats Flux Power on 11 of the 14 factors compared between the two stocks.

About Flex

Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.

About Flux Power

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie pallet packs; and smart wall mounted chargers to interface with its BMS. It sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. The company is headquartered in Vista, California.