Celestica (NYSE:CLS – Get Free Report) and Taitron Components (NASDAQ:TAIT – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
Celestica has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Taitron Components has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Celestica and Taitron Components, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Celestica | 0 | 1 | 21 | 1 | 3.00 |
| Taitron Components | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Celestica and Taitron Components”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Celestica | $12.39 billion | 2.90 | $832.50 million | $9.62 | 32.52 |
| Taitron Components | $3.54 million | 3.50 | $900,000.00 | $0.07 | 29.43 |
Celestica has higher revenue and earnings than Taitron Components. Taitron Components is trading at a lower price-to-earnings ratio than Celestica, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Celestica and Taitron Components’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Celestica | 7.16% | 39.96% | 11.06% |
| Taitron Components | -27.42% | -6.18% | -5.66% |
Institutional & Insider Ownership
67.4% of Celestica shares are owned by institutional investors. Comparatively, 18.1% of Taitron Components shares are owned by institutional investors. 1.1% of Celestica shares are owned by company insiders. Comparatively, 60.0% of Taitron Components shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Celestica beats Taitron Components on 13 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 Taitron Components
Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.
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