Head to Head Survey: Plexus (NASDAQ:PLXS) and Flex (NASDAQ:FLEX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flex	3.35%	24.93%	5.63%
Plexus	4.08%	13.34%	5.74%

Volatility and Risk

Flex has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Plexus has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Flex and Plexus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$27.91 billion	0.88	$880.00 million	$2.77	24.07
Plexus	$4.96 billion	1.01	$202.49 million	$7.42	25.32

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

Institutional and Insider Ownership

94.3% of Flex shares are held by institutional investors. Comparatively, 94.4% of Plexus shares are held by institutional investors. 0.6% of Flex shares are held by company insiders. Comparatively, 1.8% of Plexus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Flex and Plexus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	2	8	2	3.00
Plexus	0	1	7	1	3.00

Flex presently has a consensus price target of $131.78, suggesting a potential upside of 97.62%. Plexus has a consensus price target of $276.86, suggesting a potential upside of 47.34%. Given Flex’s higher possible upside, research analysts plainly believe Flex is more favorable than Plexus.

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 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.