Flex (NASDAQ:FLEX – Get Free Report) and Daikin Industries (OTCMKTS:DKILY – Get Free Report) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Institutional & Insider Ownership
94.3% of Flex shares are owned by institutional investors. 0.6% of Flex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Flex and Daikin Industries”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flex | $25.81 billion | 0.91 | $838.00 million | $2.26 | 28.21 |
| Daikin Industries | $31.21 billion | 1.17 | $1.75 billion | $0.62 | 20.05 |
Daikin Industries has higher revenue and earnings than Flex. Daikin Industries is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Flex and Daikin Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flex | 3.33% | 20.86% | 5.57% |
| Daikin Industries | 5.80% | 9.16% | 5.12% |
Volatility and Risk
Flex has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Daikin Industries has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Flex and Daikin Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flex | 0 | 3 | 8 | 0 | 2.73 |
| Daikin Industries | 0 | 0 | 0 | 0 | 0.00 |
Flex presently has a consensus price target of $66.11, suggesting a potential upside of 3.70%. Given Flex’s stronger consensus rating and higher possible upside, equities analysts plainly believe Flex is more favorable than Daikin Industries.
Summary
Flex beats Daikin Industries on 10 of the 14 factors compared between the two stocks.
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.
About Daikin Industries
Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.
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