Critical Contrast: Plexus (NASDAQ:PLXS) & Cemtrex (NASDAQ:CETX)

Cemtrex (NASDAQ:CETX – Get Free Report) and Plexus (NASDAQ:PLXS – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Cemtrex -38.59% -129.15% -45.98%
Plexus 4.03% 12.46% 5.57%

Insider and Institutional Ownership

2.0% of Cemtrex shares are owned by institutional investors. Comparatively, 94.5% of Plexus shares are owned by institutional investors. 1.8% of Plexus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cemtrex and Plexus”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cemtrex $71.17 million 0.04 -$28.11 million ($81.19) -0.02
Plexus $4.03 billion 1.48 $172.88 million $6.78 32.79

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

Analyst Ratings

This is a summary of recent ratings and price targets for Cemtrex and Plexus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cemtrex 1 0 0 0 1.00
Plexus 0 1 6 1 3.00

Plexus has a consensus target price of $276.86, indicating a potential upside of 24.53%. Given Plexus’ stronger consensus rating and higher probable upside, analysts plainly believe Plexus is more favorable than Cemtrex.

Volatility & Risk

Cemtrex has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, Plexus has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Summary

Plexus beats Cemtrex on 14 of the 15 factors compared between the two stocks.

About Cemtrex

(Get Free Report)

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.

About Plexus

(Get Free Report)

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.

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