Celestica (CLS) vs. Jabil Circuit (JBL) Head-To-Head Survey

Jabil Circuit (NYSE: JBL) and Celestica (NYSE:CLS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitabiliy.

Dividends

Jabil Circuit pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Celestica does not pay a dividend. Jabil Circuit pays out 50.0% of its earnings in the form of a dividend.

Risk and Volatility

Jabil Circuit has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Celestica has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

95.3% of Jabil Circuit shares are held by institutional investors. Comparatively, 61.5% of Celestica shares are held by institutional investors. 2.9% of Jabil Circuit shares are held by company insiders. Comparatively, 1.0% of Celestica shares are held 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Jabil Circuit 0.66% 12.27% 2.86%
Celestica 2.18% 14.14% 6.18%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jabil Circuit 0 8 2 0 2.20
Celestica 0 9 2 0 2.18

Jabil Circuit presently has a consensus price target of $25.60, suggesting a potential downside of 10.05%. Celestica has a consensus price target of $14.28, suggesting a potential upside of 5.04%. Given Celestica’s higher possible upside, analysts plainly believe Celestica is more favorable than Jabil Circuit.

Earnings and Valuation

This table compares Jabil Circuit and Celestica’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jabil Circuit $18.29 billion 0.28 $1.24 billion $0.64 44.47
Celestica $6.13 billion 0.32 $257.30 million $0.93 14.61

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

Summary

Celestica beats Jabil Circuit on 8 of the 15 factors compared between the two stocks.

About Jabil Circuit

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, networking and telecommunications, packaging, point of sale and printing industries.

About Celestica

Celestica Inc. is a provider of supply chain solutions. The Company operates in electronics manufacturing services business segment. The Company offers a range of services to its customers, including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services. Its products and services serve a range of applications, including servers; storage systems; optical equipment; aerospace and defense electronics; healthcare products and applications; semiconductor equipment, and a range of industrial and alternative energy products, including solar panels and inverters. It designs, manufactures and tests solar panels for the residential, commercial and utility scale markets. It uses technologies in the assembly and testing of its products.

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