Critical Comparison: Jabil Circuit (JBL) versus Multi-Fineline Electronix (MFLX)

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

Dividends

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

Valuation and Earnings

This table compares Jabil Circuit and Multi-Fineline Electronix’s top-line revenue, earnings per share (EPS) 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
Multi-Fineline Electronix N/A N/A N/A $1.02 22.64

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

Profitability

This table compares Jabil Circuit and Multi-Fineline Electronix’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%
Multi-Fineline Electronix N/A N/A N/A

Institutional and Insider Ownership

95.3% of Jabil Circuit shares are owned by institutional investors. 2.9% of Jabil Circuit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Jabil Circuit and Multi-Fineline Electronix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jabil Circuit 0 8 2 0 2.20
Multi-Fineline Electronix 0 1 0 0 2.00

Jabil Circuit presently has a consensus price target of $25.60, indicating a potential downside of 10.05%. Multi-Fineline Electronix has a consensus price target of $23.00, indicating a potential downside of 0.39%. Given Multi-Fineline Electronix’s higher probable upside, analysts plainly believe Multi-Fineline Electronix is more favorable than Jabil Circuit.

Volatility and Risk

Jabil Circuit has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Multi-Fineline Electronix has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Summary

Jabil Circuit beats Multi-Fineline Electronix on 9 of the 13 factors compared between the two stocks.

Jabil Circuit Company Profile

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.

Multi-Fineline Electronix Company Profile

Multi-Fineline Electronix, Inc. is engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. The Company provides flexible printed circuits and value-added component assembly solutions to the electronics industry. The Company provides its solutions to original equipment manufacturers (OEMs) and to electronic manufacturing services (EMS) providers. The Company offers products in a range of sectors, including smartphones, tablets, computer/data storage, portable bar code scanners, personal computers, wearables and other consumer electronic devices. The Company’s products include flexible printed circuits, flexible printed circuit assemblies and mechanical integration of flexible printed circuit assemblies. The Company has facilities in Irvine, California; Suzhou, China, and Singapore. The Company operates in the United States, China, Singapore and Other, which includes Malaysia, Korea and the United Kingdom.

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