Contrasting Fabrinet (NYSE:FN) & Climb Global Solutions (NASDAQ:CLMB)

Climb Global Solutions (NASDAQ:CLMB – Get Free Report) and Fabrinet (NYSE:FN – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings for Climb Global Solutions and Fabrinet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Climb Global Solutions 0 1 2 2 3.20
Fabrinet 0 3 6 1 2.80

Climb Global Solutions presently has a consensus price target of $31.00, indicating a potential downside of 28.03%. Fabrinet has a consensus price target of $548.88, indicating a potential upside of 55.38%. Given Fabrinet’s higher probable upside, analysts clearly believe Fabrinet is more favorable than Climb Global Solutions.

Profitability

This table compares Climb Global Solutions and Fabrinet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Climb Global Solutions 3.08% 19.56% 5.09%
Fabrinet 9.35% 22.32% 14.07%

Earnings & Valuation

This table compares Climb Global Solutions and Fabrinet”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Climb Global Solutions $770.74 million 1.04 $21.33 million $1.29 33.39
Fabrinet $5.14 billion 2.46 $473.03 million $13.25 26.66

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

Risk and Volatility

Climb Global Solutions has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

49.7% of Climb Global Solutions shares are owned by institutional investors. Comparatively, 97.4% of Fabrinet shares are owned by institutional investors. 3.8% of Climb Global Solutions shares are owned by company insiders. Comparatively, 0.2% of Fabrinet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Fabrinet beats Climb Global Solutions on 11 of the 15 factors compared between the two stocks.

About Climb Global Solutions

(Get Free Report)

Climb Global Solutions, Inc. is a technology distributor that connects software and hardware vendors with resellers and other channel partners. Through its distribution and services businesses, the company supports the sale and implementation of technology products for organizations and their customers. Its offerings span areas including cloud computing, cybersecurity, data management, networking and IT infrastructure. Climb also provides services such as technical support, training and marketing assistance to help channel partners bring technology solutions to market.

About Fabrinet

(Get Free Report)

Fabrinet (NYSE: FN) is a provider of advanced optical packaging and precision manufacturing services. The company works with original equipment manufacturers and other technology companies to produce complex products that require specialized engineering and manufacturing capabilities. Its services include product design and engineering support, prototyping, supply-chain management, and manufacturing. Fabrinet’s products serve markets including optical communications, industrial lasers, automotive technology, and medical devices.

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