Financial Analysis: Flex (FLEX) versus Kimball Electronics (KE)

Kimball Electronics (NASDAQ: KE) and Flex (NASDAQ:FLEX) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

60.5% of Kimball Electronics shares are owned by institutional investors. Comparatively, 94.5% of Flex shares are owned by institutional investors. 3.9% of Kimball Electronics shares are owned by company insiders. Comparatively, 0.8% of Flex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Kimball Electronics and Flex’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimball Electronics $930.91 million 0.54 $34.17 million N/A N/A
Flex $25.44 billion 0.30 $428.53 million $0.80 18.00

Flex has higher revenue and earnings than Kimball Electronics.

Volatility and Risk

Kimball Electronics has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Flex has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kimball Electronics and Flex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball Electronics 0 0 0 0 N/A
Flex 0 2 8 0 2.80

Flex has a consensus target price of $20.06, suggesting a potential upside of 39.32%. Given Flex’s higher possible upside, analysts clearly believe Flex is more favorable than Kimball Electronics.

Profitability

This table compares Kimball Electronics and Flex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball Electronics 1.84% 10.23% 6.09%
Flex 1.68% 14.32% 3.09%

Summary

Flex beats Kimball Electronics on 7 of the 12 factors compared between the two stocks.

About Kimball Electronics

Kimball Electronics, Inc., a contract electronic manufacturing services company, engages in producing durable electronics for the automotive, medical, industrial, and public safety markets primarily in the United States, China, Mexico, Poland, Romania, and Thailand. Its engineering, manufacturing, and supply chain services include design services; rapid prototyping and new product introduction support; production and testing of printed circuit board assemblies; industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing; assembly, production, and packaging of other related non-electronic products; supply chain services; and product life cycle management services. The company was founded in 1961 and is headquartered in Jasper, Indiana.

About Flex

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. It offers innovation services, such as innovations labs for supporting customer design and product development services from early concept stages; collective innovation platform, an ecosystem of technology solutions; Lab IX, a startup accelerator program; centers of excellence solutions in critical areas; interconnect technology center for printed circuits; and CloudLabs that enables customers to accelerate a spectrum of cloud, converged infrastructure, and datacenter strategies. The company also provides design and engineering services, including contract design and joint development manufacturing services, which cover various technical competencies, such as system architecture, user interface and industrial design, mechanical engineering, technology, enclosure systems, thermal and tooling design, electronic system design, reliability and failure analysis, and component level development engineering; and systems assembly and manufacturing services. In addition, it provides component product solutions, including rigid and flexible printed circuit board fabrication, and power supplies; after-market supply chain logistics services; and reverse logistics and repair services, such as returns management, exchange programs, complex repair, asset recovery, recycling and e-waste management for consumer and midrange products, printers, smart phones, consumer medical devices, notebooks, PC's, set-top boxes, game consoles, and infrastructure products. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1990 and is based in Singapore.

Receive News & Ratings for Kimball Electronics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kimball Electronics and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply