Comparing Teledyne Technologies (NYSE:TDY) and Sanmina (NASDAQ:SANM)

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

Insider & Institutional Ownership

92.7% of Sanmina shares are held by institutional investors. Comparatively, 91.6% of Teledyne Technologies shares are held by institutional investors. 3.1% of Sanmina shares are held by insiders. Comparatively, 1.4% of Teledyne Technologies 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.

Volatility & Risk

Sanmina has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanmina	0	2	2	1	2.80
Teledyne Technologies	0	4	3	1	2.62

Sanmina presently has a consensus price target of $198.33, indicating a potential downside of 9.54%. Teledyne Technologies has a consensus price target of $723.33, indicating a potential upside of 16.50%. Given Teledyne Technologies’ higher probable upside, analysts clearly believe Teledyne Technologies is more favorable than Sanmina.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sanmina	2.41%	19.08%	5.75%
Teledyne Technologies	15.29%	10.56%	7.34%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanmina	$8.13 billion	1.45	$245.89 million	$5.59	39.22
Teledyne Technologies	$6.12 billion	4.71	$894.80 million	$20.71	29.98

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

About Sanmina

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems. In addition, the company provides components, such as printed circuit boards, backplane and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts; memory solutions; storage platforms; optical, radio frequency, and microelectronic solutions; defense and aerospace product, design, manufacturing, repair, and refurbishment services; and cloud-based manufacturing execution software. It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions. Sanmina Corporation was incorporated in 1980 and is headquartered in San Jose, California.

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.