Critical Review: Wallbox (NYSE:WBX) and Flex (NASDAQ:FLEX)

Wallbox (NYSE:WBX) and Flex (NASDAQ:FLEX) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Wallbox has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Flex has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Insider & Institutional Ownership

36.9% of Wallbox shares are held by institutional investors. Comparatively, 94.3% of Flex shares are held by institutional investors. 33.3% of Wallbox shares are held by company insiders. Comparatively, 0.6% of Flex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wallbox	-70.12%	-6,451.74%	-55.57%
Flex	3.15%	22.12%	5.53%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wallbox	$164.15 million	0.28	-$115.14 million	N/A	N/A
Flex	$27.91 billion	1.82	$880.00 million	$2.33	59.17

Flex has higher revenue and earnings than Wallbox.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wallbox	1	2	2	0	2.20
Flex	0	2	9	1	2.92

Wallbox presently has a consensus price target of $5.00, suggesting a potential upside of 83.15%. Flex has a consensus price target of $112.80, suggesting a potential downside of 18.18%. Given Wallbox’s higher probable upside, research analysts clearly believe Wallbox is more favorable than Flex.

Summary

Flex beats Wallbox on 10 of the 13 factors compared between the two stocks.

About Wallbox

Wallbox N.V., a technology company, designs, manufactures, and distributes charging solutions for residential, business, and public use worldwide. The company operates in three segments: Europe-Middle East and Asia, North America, and Asia-Pacific. It offers EV charging hardware products, such as Pulsar Plus, Pulsar Plus Socket, Pulsar Max, and Pulsar Pro, an AC smart chargers for home and shared spaces; Commander 2, an AC smart charger for fleets and businesses with a 7-inch touchscreen display that provides a personalized and secure user interface for multiple users; Copper SB, an AC smart charger for fleets and businesses with an integrated socket that makes it compatible with both type 1 and type 2 charging cables; Quasar 2, a DC bi-directional charger for home-use that allows to charge and discharge electric vehicle; Supernova, a DC fast charger equipment designed for public use; and Hypernova that allows to optimize available power and adapt to the number of EVs connected for public charging along highways and transcontinental road networks; as well as Wallbox ABL eM4 Single and Twin chargers and eMC3 charging pole. The company also provides EV charging software solutions, including the myWallbox platform, a cloud based software designed to provide smart management of its chargers in residential and business parking settings; Electromaps, a hardware-agnostic e-mobility service provider and charger management software that enables users to find publicly available charging ports; EVectrum, a hardware-agnostic platform for managing chargers; and Sirius, an energy management solution that is designed to seamlessly integrates the electric grid with solar, on-site batteries, and other renewable energy sources. It also offers upgrades and accessories, which includes energy meters, EV charging cables, pedestals, and RFID cards; and installation, and charging network management services. Wallbox N.V. was incorporated in 2015 and is headquartered in Barcelona, Spain.

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.