Sanmina (NASDAQ:SANM – Get Free Report) and CSP (NASDAQ:CSPI – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Profitability
This table compares Sanmina and CSP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sanmina | 2.41% | 19.08% | 5.75% |
| CSP | -1.22% | -1.56% | -0.99% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Sanmina and CSP, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sanmina | 0 | 3 | 2 | 0 | 2.40 |
| CSP | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
92.7% of Sanmina shares are held by institutional investors. Comparatively, 26.7% of CSP shares are held by institutional investors. 3.1% of Sanmina shares are held by insiders. Comparatively, 15.0% of CSP shares are held 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.
Risk & Volatility
Sanmina has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, CSP has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Sanmina and CSP”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sanmina | $8.13 billion | 1.39 | $245.89 million | $5.59 | 37.65 |
| CSP | $56.91 million | 1.32 | -$90,000.00 | ($0.07) | -106.14 |
Sanmina has higher revenue and earnings than CSP. CSP is trading at a lower price-to-earnings ratio than Sanmina, indicating that it is currently the more affordable of the two stocks.
Summary
Sanmina beats CSP on 13 of the 14 factors compared between the two stocks.
About Sanmina
Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems. In addition, the company provides components, such as printed circuit boards, backplane and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts; memory solutions; storage platforms; optical, radio frequency, and microelectronic solutions; defense and aerospace product, design, manufacturing, repair, and refurbishment services; and cloud-based manufacturing execution software. It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions. Sanmina Corporation was incorporated in 1980 and is headquartered in San Jose, California.
About CSP
CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.
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