Financial Comparison: Celestica (NYSE:CLS) and Keysight Technologies (NYSE:KEYS)

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

Risk & Volatility

Celestica has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

67.4% of Celestica shares are owned by institutional investors. Comparatively, 84.6% of Keysight Technologies shares are owned by institutional investors. 1.1% of Celestica shares are owned by insiders. Comparatively, 0.4% of Keysight Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Celestica	6.83%	33.80%	10.88%
Keysight Technologies	19.08%	24.34%	13.10%

Valuation & Earnings

This table compares Celestica and Keysight Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$12.39 billion	2.10	$832.50 million	$10.57	19.56
Keysight Technologies	$5.38 billion	8.59	$850.00 million	$7.28	37.26

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Celestica and Keysight Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	1	21	2	3.04
Keysight Technologies	0	3	11	0	2.79

Celestica currently has a consensus target price of $453.32, indicating a potential upside of 119.24%. Keysight Technologies has a consensus target price of $401.42, indicating a potential upside of 48.00%. Given Celestica’s stronger consensus rating and higher probable upside, research analysts plainly believe Celestica is more favorable than Keysight Technologies.

Summary

Celestica beats Keysight Technologies on 9 of the 15 factors compared between the two stocks.

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.

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.