Critical Review: Remote Dynamics (OTCMKTS:RMTD) versus Flex (NASDAQ:FLEX)

Remote Dynamics (OTCMKTS:RMTD) and Flex (NASDAQ:FLEX) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Remote Dynamics and Flex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remote Dynamics	0	0	0	0	0.00
Flex	0	2	9	1	2.92

Flex has a consensus target price of $115.70, indicating a potential downside of 22.72%. Given Remote Dynamics’ higher probable upside, analysts plainly believe Remote Dynamics is more favorable than Flex.

Profitability

This table compares Remote Dynamics and Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remote Dynamics	N/A	N/A	N/A
Flex	3.15%	22.12%	5.53%

Volatility and Risk

Remote Dynamics has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Valuation and Earnings

This table compares Remote Dynamics and Flex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Remote Dynamics	N/A	N/A	N/A	N/A	N/A
Flex	$27.91 billion	1.96	$880.00 million	$2.33	64.25

Flex has higher revenue and earnings than Remote Dynamics.

Insider and Institutional Ownership

94.3% of Flex shares are held by institutional investors. 0.6% of Flex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Flex beats Remote Dynamics on 10 of the 11 factors compared between the two stocks.

About Remote Dynamics

Remote Dynamics, Inc. markets, sells, and supports automatic vehicle location and mobile resource management solutions. It serves its solutions to construction, field services, distribution, limousine, electrical/plumbing, waste management, and government. The company was incorporated in 1994 and is headquartered in Plano, Texas.

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.