Nortech Systems (NASDAQ:NSYS – Get Free Report) and Flex (NASDAQ:FLEX – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Risk & Volatility
Nortech Systems has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Profitability
This table compares Nortech Systems and Flex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nortech Systems | 0.83% | 3.01% | 1.36% |
| Flex | 3.32% | 23.15% | 5.50% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nortech Systems | $118.36 million | 0.28 | -$250,000.00 | $0.36 | 32.75 |
| Flex | $27.91 billion | 1.44 | $880.00 million | $2.59 | 41.94 |
Flex has higher revenue and earnings than Nortech Systems. Nortech Systems is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Nortech Systems and Flex, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nortech Systems | 0 | 1 | 0 | 0 | 2.00 |
| Flex | 0 | 3 | 8 | 1 | 2.83 |
Flex has a consensus price target of $114.20, suggesting a potential upside of 5.13%. Given Flex’s stronger consensus rating and higher possible upside, analysts clearly believe Flex is more favorable than Nortech Systems.
Insider and Institutional Ownership
3.0% of Nortech Systems shares are held by institutional investors. Comparatively, 94.3% of Flex shares are held by institutional investors. 12.4% of Nortech Systems shares are held by insiders. Comparatively, 0.6% of Flex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Flex beats Nortech Systems on 14 of the 15 factors compared between the two stocks.
About Nortech Systems
Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.
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.
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