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

Volatility and Risk

Celestica has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, SigmaTron International has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.

Valuation and Earnings

This table compares Celestica and SigmaTron International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celestica $6.63 billion 0.18 $98.90 million $0.70 12.74
SigmaTron International $278.13 million 0.05 -$3.24 million N/A N/A

Celestica has higher revenue and earnings than SigmaTron International.

Profitability

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

Net Margins Return on Equity Return on Assets
Celestica 1.49% 7.51% 2.99%
SigmaTron International -1.99% 1.36% 0.49%

Insider and Institutional Ownership

64.4% of Celestica shares are held by institutional investors. Comparatively, 26.3% of SigmaTron International shares are held by institutional investors. 1.0% of Celestica shares are held by insiders. Comparatively, 8.2% of SigmaTron International 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Celestica and SigmaTron International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celestica 0 5 2 0 2.29
SigmaTron International 0 0 0 0 N/A

Celestica presently has a consensus price target of $10.00, suggesting a potential upside of 12.11%. Given Celestica’s higher probable upside, analysts clearly believe Celestica is more favorable than SigmaTron International.

Summary

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

Celestica Company Profile

Celestica Inc. provides design, manufacturing, hardware platform, and supply chain solutions in Canada and internationally. The company offers a range of services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, and after-market repair and return services. Its products and services are used in various applications, such as servers, networking and telecommunications equipment, storage systems, converged systems, optical equipment, aerospace and defense electronics, healthcare products and applications, semiconductor equipment, and industrial and alternative energy products. The company serves customers in the aerospace and defense, industrial, smart energy, healthcare, semiconductor equipment, consumer, communications, and enterprise end markets. Celestica Inc. was incorporated in 1996 and is headquartered in Toronto, Canada.

SigmaTron International Company Profile

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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