Celestica (CLS) versus Park Electrochemical (PKE) Critical Comparison

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

Profitability

This table compares Celestica and Park Electrochemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celestica 1.72% 8.84% 4.08%
Park Electrochemical 4.60% 4.69% 2.78%

Dividends

Park Electrochemical pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. Celestica does not pay a dividend. Park Electrochemical pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

73.0% of Celestica shares are owned by institutional investors. Comparatively, 83.2% of Park Electrochemical shares are owned by institutional investors. 1.0% of Celestica shares are owned by insiders. Comparatively, 8.0% of Park Electrochemical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celestica $6.11 billion 0.21 $105.00 million $0.72 14.40
Park Electrochemical $114.61 million 3.10 $9.28 million $0.47 37.34

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

Volatility and Risk

Celestica has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Park Electrochemical has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Celestica and Park Electrochemical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celestica 0 7 3 0 2.30
Park Electrochemical 0 0 1 0 3.00

Celestica presently has a consensus target price of $13.13, suggesting a potential upside of 26.60%. Park Electrochemical has a consensus target price of $24.00, suggesting a potential upside of 36.75%. Given Park Electrochemical’s stronger consensus rating and higher probable upside, analysts plainly believe Park Electrochemical is more favorable than Celestica.

Summary

Park Electrochemical beats Celestica on 9 of the 16 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.

Park Electrochemical Company Profile

Park Electrochemical Corp., through its subsidiaries, develops, manufactures, markets, and sells high-technology digital and radio frequency/microwave printed circuit material products primarily for the telecommunications and Internet infrastructure, enterprise, and military/aerospace markets. It also provides composite materials, primary and secondary structures and assemblies, and tooling products for the aerospace markets. The company's printed circuit materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnection systems, such as multilayer back-planes, wireless packages, high-speed/low-loss multilayers, and high density interconnects. It markets and sells its printed circuit materials to printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries. The company has operations in North America, Europe, and Asia. Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.

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