Flex (NASDAQ:FLEX) & Focus Universal (NASDAQ:FCUV) Critical Review

Focus Universal (NASDAQ:FCUV) and Flex (NASDAQ:FLEX) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Earnings and Valuation

This table compares Focus Universal and Flex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Focus Universal	$250,000.00	13.45	-$4.79 million	($15.01)	-0.32
Flex	$27.91 billion	1.50	$880.00 million	$2.59	43.65

Flex has higher revenue and earnings than Focus Universal. Focus Universal is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

4.4% of Focus Universal shares are owned by institutional investors. Comparatively, 94.3% of Flex shares are owned by institutional investors. 22.8% of Focus Universal shares are owned by insiders. Comparatively, 0.6% of Flex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Focus Universal and Flex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Focus Universal	1	0	0	0	1.00
Flex	0	3	8	1	2.83

Flex has a consensus target price of $114.20, indicating a potential upside of 1.03%. Given Flex’s stronger consensus rating and higher possible upside, analysts plainly believe Flex is more favorable than Focus Universal.

Profitability

This table compares Focus Universal and Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Focus Universal	-637.15%	-151.07%	-51.03%
Flex	3.32%	23.15%	5.50%

Risk and Volatility

Focus Universal has a beta of -0.65, suggesting that its stock price is 165% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Summary

Flex beats Focus Universal on 13 of the 15 factors compared between the two stocks.

About Focus Universal

Focus Universal Inc. develops and manufactures smart instrumentation platform and device. It offers Ubiquitor, a wireless sensor device with a universal sensor node and gateway system that uses a computer or mobile device as the output display module that displays the readings of various sensor nodes. The company's universal smart instrumentation platform (USIP) utilizes mobile devices or computers to communicate with smart devices, such as sensors, instruments, probes, and controllers to monitor and control any functions. It also offers digital sensors and horticultural sensors, as well as universal smart controller (USC), a controller device. Further, the company provides filter and handheld meter products, including fan speed adjuster, carbon filter, and HEPA filtration systems, as well as digital light and quantum par meters through distributors. Additionally, it provides integration of houses, apartment, commercial complex, and office spaces with audio, visual, and control systems to integrate devices in the low voltage field, as well as partial equipment upgrade and installation services. The company was incorporated in 2012 and is based in Ontario, California.

About Flex

Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.