Flex (NASDAQ:FLEX – Get Free Report) and Plexus (NASDAQ:PLXS – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
Volatility & Risk
Flex has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Plexus has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Profitability
This table compares Flex and Plexus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flex | 3.35% | 24.93% | 5.63% |
| Plexus | 4.08% | 13.34% | 5.74% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Flex and Plexus, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flex | 0 | 1 | 8 | 2 | 3.09 |
| Plexus | 0 | 1 | 7 | 1 | 3.00 |
Flex currently has a consensus price target of $138.88, suggesting a potential upside of 70.75%. Plexus has a consensus price target of $276.86, suggesting a potential upside of 28.29%. Given Flex’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Flex is more favorable than Plexus.
Valuation & Earnings
This table compares Flex and Plexus”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flex | $30.95 billion | 0.97 | $880.00 million | $2.77 | 29.36 |
| Plexus | $4.96 billion | 1.16 | $202.49 million | $7.42 | 29.08 |
Flex has higher revenue and earnings than Plexus. Plexus is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.3% of Flex shares are owned by institutional investors. Comparatively, 94.5% of Plexus shares are owned by institutional investors. 0.6% of Flex shares are owned by insiders. Comparatively, 1.8% of Plexus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Flex beats Plexus on 9 of the 15 factors compared between the two stocks.
About Flex
Flex Ltd. is a global manufacturing and supply-chain services company that works with businesses to design, engineer, manufacture and support products. Its services include product development, sourcing, production, logistics and after-market support. The company serves a range of industries, including automotive, healthcare, industrial, lifestyle and communications, as well as cloud and data-center markets. Its work spans products and systems such as medical devices, vehicle components, industrial equipment and technology infrastructure.
About Plexus
Plexus Corp. is a provider of electronics manufacturing services and product realization solutions for companies that develop complex products. Its services span product design and development, engineering, manufacturing, supply chain management, fulfillment, and aftermarket support. The company serves customers in markets including healthcare and life sciences, industrial, and aerospace and defense. Its work supports products that may require specialized engineering, quality controls, and production processes.
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