Sanmina (NASDAQ:SANM) and SigmaTron International (NASDAQ:SGMA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares Sanmina and SigmaTron International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanmina $7.11 billion 0.25 -$95.53 million $1.84 14.15
SigmaTron International $278.13 million 0.06 -$3.24 million N/A N/A

SigmaTron International has lower revenue, but higher earnings than Sanmina.

Institutional and Insider Ownership

91.7% of Sanmina shares are owned by institutional investors. Comparatively, 29.2% of SigmaTron International shares are owned by institutional investors. 5.1% of Sanmina shares are owned by company insiders. Comparatively, 8.2% of SigmaTron International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sanmina has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, SigmaTron International has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sanmina and SigmaTron International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanmina 0 1 3 0 2.75
SigmaTron International 0 0 0 0 N/A

Sanmina presently has a consensus target price of $35.75, indicating a potential upside of 37.34%. Given Sanmina’s higher probable upside, equities analysts plainly believe Sanmina is more favorable than SigmaTron International.

Profitability

This table compares Sanmina and SigmaTron International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanmina -1.28% 10.25% 3.91%
SigmaTron International -1.49% 3.73% 1.39%

Summary

Sanmina beats SigmaTron International on 9 of the 12 factors compared between the two stocks.

About Sanmina

Sanmina Corp. engages in the provision of integrated manufacturing solutions, components, products and repair, logistics, and after-market services. It operates through the Integrated Manufacturing Solutions (IMS); and Components, Products, and Services (CPS) segments. The IMS segment consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. The CPS segment includes interconnect systems and mechanical systems; radio frequency (RF), optical and microelectronic, and enterprise solutions; defense and aerospace products; cloud-based manufacturing execution software; and design, engineering, logistics, and repair services. The company was founded by Jure Sola in 1980 and is headquartered in San Jose, CA.

About SigmaTron International

SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS). Its EMS services include the production of printed circuit board assemblies and completely assembled (box-build) electronic products. The company also offers automatic and manual assembly, and testing of products; material sourcing and procurement services; manufacturing and test engineering support services; design services; warehousing and distribution services; and assistance in obtaining product approval from governmental and other regulatory bodies. It primarily serves customers operating in the industrial electronics, consumer electronics, and medical/life sciences industries in the United States, Mexico, China, Vietnam, and Taiwan. The company markets its services through independent manufacturers' representative organizations. SigmaTron International, Inc. was founded in 1993 and is headquartered in Elk Grove Village, Illinois.

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