Corning (NYSE:GLW) vs. Plexus (NASDAQ:PLXS) Critical Survey

Plexus (NASDAQ:PLXS) and Corning (NYSE:GLW) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Risk and Volatility

Plexus has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Corning has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares Plexus and Corning”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plexus	$4.96 billion	1.15	$202.49 million	$7.42	28.76
Corning	$17.72 billion	6.08	$1.60 billion	$2.47	50.60

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

Institutional and Insider Ownership

94.4% of Plexus shares are owned by institutional investors. Comparatively, 69.8% of Corning shares are owned by institutional investors. 1.8% of Plexus shares are owned by insiders. Comparatively, 0.3% of Corning shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Plexus and Corning, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plexus	0	1	7	1	3.00
Corning	0	6	13	1	2.75

Plexus presently has a consensus price target of $276.86, suggesting a potential upside of 29.75%. Corning has a consensus price target of $175.81, suggesting a potential upside of 40.66%. Given Corning’s higher possible upside, analysts plainly believe Corning is more favorable than Plexus.

Profitability

This table compares Plexus and Corning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plexus	4.08%	13.34%	5.74%
Corning	12.13%	20.83%	8.39%

Summary

Corning beats Plexus on 10 of the 14 factors compared between the two stocks.

About Plexus

Plexus Corp. provides electronic manufacturing services in the United States and internationally. It offers design, develop, supply chain, new product introduction, and manufacturing solutions, as well as sustaining services to companies in the healthcare/life sciences, industrial/commercial, aerospace/defense, and communications market sectors. The company was founded in 1979 and is headquartered in Neenah, Wisconsin.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.