Critical Contrast: Teledyne Technologies (NYSE:TDY) and Celestica (NYSE:CLS)

Teledyne Technologies (NYSE:TDY) and Celestica (NYSE:CLS) are both large-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Volatility & Risk

Teledyne Technologies has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Celestica has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.

Institutional & Insider Ownership

91.6% of Teledyne Technologies shares are held by institutional investors. Comparatively, 67.4% of Celestica shares are held by institutional investors. 1.4% of Teledyne Technologies shares are held by insiders. Comparatively, 1.1% of Celestica shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Teledyne Technologies and Celestica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teledyne Technologies	15.29%	10.56%	7.34%
Celestica	7.16%	39.96%	11.06%

Earnings & Valuation

This table compares Teledyne Technologies and Celestica”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$6.12 billion	4.58	$894.80 million	$20.71	29.15
Celestica	$12.39 billion	3.09	$832.50 million	$9.62	34.62

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Teledyne Technologies and Celestica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	4	3	1	2.62
Celestica	0	0	23	1	3.04

Teledyne Technologies presently has a consensus price target of $723.33, indicating a potential upside of 19.80%. Celestica has a consensus price target of $440.50, indicating a potential upside of 32.28%. Given Celestica’s stronger consensus rating and higher possible upside, analysts clearly believe Celestica is more favorable than Teledyne Technologies.

Summary

Celestica beats Teledyne Technologies on 8 of the 14 factors compared between the two stocks.

About Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.