Flextronics International (NASDAQ: FLEX) and Teledyne Technologies (NYSE:TDY) are both mid-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Institutional & Insider Ownership
97.5% of Flextronics International shares are held by institutional investors. Comparatively, 83.4% of Teledyne Technologies shares are held by institutional investors. 0.8% of Flextronics International shares are held by insiders. Comparatively, 3.3% of Teledyne Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Flextronics International has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
This table compares Flextronics International and Teledyne Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Flextronics International and Teledyne Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Flextronics International currently has a consensus target price of $19.50, indicating a potential upside of 5.01%. Teledyne Technologies has a consensus target price of $180.00, indicating a potential upside of 0.28%. Given Flextronics International’s stronger consensus rating and higher probable upside, analysts plainly believe Flextronics International is more favorable than Teledyne Technologies.
Earnings and Valuation
This table compares Flextronics International and Teledyne Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Flextronics International||$23.86 billion||0.41||$319.56 million||$1.01||18.39|
|Teledyne Technologies||$2.14 billion||2.97||$190.90 million||$5.88||30.53|
Flextronics International has higher revenue and earnings than Teledyne Technologies. Flextronics International is trading at a lower price-to-earnings ratio than Teledyne Technologies, indicating that it is currently the more affordable of the two stocks.
About Flextronics International
Flex Ltd, formerly Flextronics International Ltd. provides design, engineering, manufacturing, and supply chain services and solutions. The Company designs, builds, ships and services packaged consumer electronics and industrial products for original equipment manufacturers (OEMs). Its segments include High Reliability Solutions (HRS), Consumer Technologies Group (CTG), Industrial and Emerging Industries (IEI) and Communications & Enterprise Compute (CEC). The HRS segment consists of its medical business, automotive business, and defense and aerospace businesses. The CTG segment includes its mobile devices business, consumer electronics business and high-volume computing business. The IEI segment consists of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting. The CEC segment includes radio access base stations, remote radio heads, and small cells for wireless infrastructure.
About Teledyne Technologies
Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets. The Company’s segments include Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, as well as electronic test and measurement equipment. Digital Imaging segment includes sensors, cameras and systems, within the visible, infrared, ultraviolet and X-ray spectra. Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics. Engineered Systems segment provides systems engineering and integration and technology development, as well as manufacturing solutions.
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