SecureAlert (OTCMKTS:TRCK) vs. Flex (NASDAQ:FLEX) Head-To-Head Analysis

Flex (NASDAQ:FLEX) and SecureAlert (OTCMKTS:TRCK) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for Flex and SecureAlert, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	2	9	1	2.92
SecureAlert	0	0	0	0	0.00

Flex presently has a consensus target price of $114.20, suggesting a potential downside of 9.87%. Given Flex’s stronger consensus rating and higher probable upside, equities analysts clearly believe Flex is more favorable than SecureAlert.

Volatility and Risk

Flex has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, SecureAlert has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$27.91 billion	1.68	$880.00 million	$2.59	48.92
SecureAlert	$35.22 million	0.74	-$1.88 million	$0.03	21.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flex	3.32%	23.15%	5.50%
SecureAlert	1.24%	-31.89%	9.35%

Insider and Institutional Ownership

94.3% of Flex shares are held by institutional investors. Comparatively, 5.8% of SecureAlert shares are held by institutional investors. 0.6% of Flex shares are held by insiders. Comparatively, 45.9% of SecureAlert shares are held by 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 SecureAlert on 13 of the 15 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 SecureAlert

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.