Flextronics International (NASDAQ: FLEX) and API Technologies Corp (NASDAQ:ATNY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk and Volatility

Flextronics International has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, API Technologies Corp has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Flextronics International and API Technologies Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flextronics International 2.25% 22.71% 4.81%
API Technologies Corp -11.81% -30.24% -7.58%

Institutional and Insider Ownership

95.3% of Flextronics International shares are owned by institutional investors. 0.8% of Flextronics International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Flextronics International and API Technologies Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flextronics International 0 2 7 0 2.78
API Technologies Corp 0 0 0 0 N/A

Flextronics International presently has a consensus target price of $19.50, indicating a potential upside of 6.50%. Given Flextronics International’s higher possible upside, analysts plainly believe Flextronics International is more favorable than API Technologies Corp.

Valuation & Earnings

This table compares Flextronics International and API Technologies Corp’s gross revenue, earnings per share (EPS) 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 18.13
API Technologies Corp N/A N/A N/A ($0.48) -4.17

Flextronics International has higher revenue and earnings than API Technologies Corp. API Technologies Corp is trading at a lower price-to-earnings ratio than Flextronics International, indicating that it is currently the more affordable of the two stocks.

Summary

Flextronics International beats API Technologies Corp on 9 of the 10 factors compared between the two stocks.

Flextronics International Company Profile

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.

API Technologies Corp Company Profile

API Technologies Corp. (API) is engaged in providing radio frequency (RF) microwave, microelectronic, power and security solutions. The Company offers a range of RF, microwave, millimeter wave and microelectronics products ranging from components to complete system solutions. The Company operates through three segments. The Systems, Subsystems & Components (SSC) segment’s products include RF, microwave and millimeter wave products; microcircuits and microelectronics; electromagnetic integrated solutions, and power solutions. The Electronic Manufacturing Services segment offers electronics manufacturing services (EMS) for defense, commercial and medical customers. The Secure Systems & Information Assurance (SSIA) segment develops and offers various secure network and hardware solutions, including TEMPEST and Emanation Security, ruggedized systems, secure access, information assurance products, as well as TEMPEST certification.

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