Critical Survey: Flex (NASDAQ:FLEX) vs. Greenland Technologies (NASDAQ:GTEC)

Greenland Technologies (NASDAQ:GTEC) and Flex (NASDAQ:FLEX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Greenland Technologies and Flex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greenland Technologies	$83.94 million	0.24	$14.07 million	$0.60	1.97
Flex	$25.81 billion	0.93	$838.00 million	$2.28	28.02

Flex has higher revenue and earnings than Greenland Technologies. Greenland Technologies 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 ratings and target prices for Greenland Technologies and Flex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenland Technologies	1	0	0	0	1.00
Flex	0	1	8	0	2.89

Flex has a consensus target price of $59.71, suggesting a potential downside of 6.54%. Given Flex’s stronger consensus rating and higher possible upside, analysts plainly believe Flex is more favorable than Greenland Technologies.

Volatility & Risk

Greenland Technologies has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Flex has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Greenland Technologies and Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greenland Technologies	9.43%	14.06%	6.83%
Flex	3.42%	20.25%	5.47%

Insider and Institutional Ownership

10.9% of Greenland Technologies shares are owned by institutional investors. Comparatively, 94.3% of Flex shares are owned by institutional investors. 47.2% of Greenland Technologies shares are owned by company insiders. Comparatively, 0.6% of Flex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Flex beats Greenland Technologies on 10 of the 14 factors compared between the two stocks.

About Greenland Technologies

Greenland Technologies Holding Corporation designs, develops, manufactures, and sells components and products for material handling industries worldwide. The company offers transmission products, such as transmission systems and integrated powertrain primarily for electric forklift trucks; electric industrial heavy equipment, including electric wheeled front loader, electric excavator, and electric lithium forklifts; and provides charging solutions. Its products are used in manufacturing and logistic applications, such as factories, workshops, warehouses, fulfillment centers, shipyards, and seaports. Greenland Technologies Holding Corporation was and is headquartered in East Windsor, New Jersey.

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.