Financial Comparison: SMTC (SMTX) versus Jabil (JBL)
SMTC (NASDAQ:SMTX) and Jabil (NYSE:JBL) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.
Valuation & Earnings
This table compares SMTC and Jabil’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SMTC||$139.23 million||0.92||-$7.84 million||($0.44)||-12.50|
|Jabil||$22.10 billion||0.17||$86.33 million||$2.17||11.48|
This table compares SMTC and Jabil’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
SMTC has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Jabil has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. SMTC does not pay a dividend. Jabil pays out 14.7% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for SMTC and Jabil, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SMTC presently has a consensus price target of $7.50, suggesting a potential upside of 36.36%. Jabil has a consensus price target of $28.25, suggesting a potential upside of 13.41%. Given SMTC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SMTC is more favorable than Jabil.
Institutional & Insider Ownership
14.6% of SMTC shares are owned by institutional investors. Comparatively, 90.8% of Jabil shares are owned by institutional investors. 27.7% of SMTC shares are owned by insiders. Comparatively, 2.9% of Jabil shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Jabil beats SMTC on 10 of the 15 factors compared between the two stocks.
SMTC Company Profile
SMTC Corporation provides electronics manufacturing services worldwide. The company offers end-to-end electronics manufacturing services, including product design and engineering; printed circuit board assembly; production, enclosure, cable assembly, and precision metal fabrication; systems integration and testing; and configuration to order, build to order, and direct order fulfillment services. It provides integrated contract manufacturing services to original equipment manufacturers and technology companies primarily in the industrial, networking and communications, power and energy, and medical market sectors. SMTC Corporation was founded in 1985 and is headquartered in Markham, Canada.
Jabil Company Profile
Jabil Inc. provides electronic manufacturing services and solutions worldwide. The company operates through two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also specializes in three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various industrial design, advance mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, and PCBA design validation and verification services; and other consulting services, including the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company offers systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves automotive and transportation, capital equipment, computing and storage, defense and aerospace, digital home, industrial and energy, networking and telecommunications, point of sale, printing, consumer wearables, healthcare, mobility, and packaging industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida.
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