Fabrinet (NYSE:FN) versus Climb Global Solutions (NASDAQ:CLMB) Head-To-Head Comparison

Climb Global Solutions (NASDAQ:CLMB) and Fabrinet (NYSE:FN) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Climb Global Solutions has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

49.7% of Climb Global Solutions shares are held by institutional investors. Comparatively, 97.4% of Fabrinet shares are held by institutional investors. 3.8% of Climb Global Solutions shares are held by insiders. Comparatively, 0.2% of Fabrinet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Climb Global Solutions and Fabrinet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Global Solutions	$770.74 million	1.04	$21.33 million	$1.29	33.39
Fabrinet	$5.14 billion	2.46	$473.03 million	$13.25	26.66

Fabrinet has higher revenue and earnings than Climb Global Solutions. Fabrinet is trading at a lower price-to-earnings ratio than Climb Global Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Climb Global Solutions and Fabrinet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	3.08%	19.56%	5.09%
Fabrinet	9.35%	22.32%	14.07%

Analyst Ratings

This is a summary of current recommendations for Climb Global Solutions and Fabrinet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	0	1	2	2	3.20
Fabrinet	0	3	6	1	2.80

Climb Global Solutions presently has a consensus target price of $31.00, suggesting a potential downside of 28.03%. Fabrinet has a consensus target price of $548.88, suggesting a potential upside of 55.38%. Given Fabrinet’s higher possible upside, analysts plainly believe Fabrinet is more favorable than Climb Global Solutions.

Summary

Fabrinet beats Climb Global Solutions on 11 of the 15 factors compared between the two stocks.

About Climb Global Solutions

Climb Global Solutions, Inc. is a technology distributor that connects software and hardware vendors with resellers and other channel partners. Through its distribution and services businesses, the company supports the sale and implementation of technology products for organizations and their customers. Its offerings span areas including cloud computing, cybersecurity, data management, networking and IT infrastructure. Climb also provides services such as technical support, training and marketing assistance to help channel partners bring technology solutions to market.

About Fabrinet

Fabrinet (NYSE: FN) is a provider of advanced optical packaging and precision manufacturing services. The company works with original equipment manufacturers and other technology companies to produce complex products that require specialized engineering and manufacturing capabilities. Its services include product design and engineering support, prototyping, supply-chain management, and manufacturing. Fabrinet’s products serve markets including optical communications, industrial lasers, automotive technology, and medical devices.