Jabil (NYSE:JBL) & NAPCO Security Technologies (NASDAQ:NSSC) Critical Survey

NAPCO Security Technologies (NASDAQ:NSSC) and Jabil (NYSE:JBL) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares NAPCO Security Technologies and Jabil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NAPCO Security Technologies	21.27%	31.41%	26.06%
Jabil	2.90%	89.50%	5.54%

Earnings and Valuation

This table compares NAPCO Security Technologies and Jabil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAPCO Security Technologies	$202.32 million	6.86	$43.03 million	$1.21	32.08
Jabil	$35.95 billion	0.80	$1.04 billion	$9.78	28.03

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

Insider & Institutional Ownership

85.1% of NAPCO Security Technologies shares are held by institutional investors. Comparatively, 93.4% of Jabil shares are held by institutional investors. 5.7% of NAPCO Security Technologies shares are held by insiders. Comparatively, 1.4% of Jabil shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

NAPCO Security Technologies has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Jabil has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Dividends

NAPCO Security Technologies pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 0.1%. NAPCO Security Technologies pays out 56.2% of its earnings in the form of a dividend. Jabil pays out 3.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NAPCO Security Technologies has raised its dividend for 2 consecutive years. NAPCO Security Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NAPCO Security Technologies and Jabil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAPCO Security Technologies	0	2	4	0	2.67
Jabil	0	0	9	2	3.18

NAPCO Security Technologies presently has a consensus price target of $51.33, suggesting a potential upside of 32.23%. Jabil has a consensus price target of $434.22, suggesting a potential upside of 58.40%. Given Jabil’s stronger consensus rating and higher probable upside, analysts plainly believe Jabil is more favorable than NAPCO Security Technologies.

Summary

Jabil beats NAPCO Security Technologies on 10 of the 18 factors compared between the two stocks.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

About Jabil

Jabil Inc. provides manufacturing services and solutions worldwide. It operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. The company offers electronics design, production, and product management services; electronic circuit design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also provides three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as various industrial design, mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida.