Celestica (NYSE: CLS) and Microsemi Corporation (NASDAQ:MSCC) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Insider and Institutional Ownership
59.8% of Celestica shares are owned by institutional investors. Comparatively, 98.5% of Microsemi Corporation shares are owned by institutional investors. 1.0% of Celestica shares are owned by company insiders. Comparatively, 0.6% of Microsemi Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Celestica and Microsemi Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Celestica||$6.21 billion||0.29||$256.20 million||$0.92||13.60|
|Microsemi Corporation||$1.79 billion||3.24||$550.50 million||$1.06||47.33|
Microsemi Corporation has higher revenue, but lower earnings than Celestica. Celestica is trading at a lower price-to-earnings ratio than Microsemi Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Celestica has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Microsemi Corporation has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
This table compares Celestica and Microsemi Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Celestica and Microsemi Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Celestica presently has a consensus target price of $14.02, suggesting a potential upside of 12.03%. Microsemi Corporation has a consensus target price of $58.27, suggesting a potential upside of 16.15%. Given Microsemi Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Microsemi Corporation is more favorable than Celestica.
Microsemi Corporation beats Celestica on 12 of the 14 factors compared between the two stocks.
Celestica Inc. is a provider of supply chain solutions. The Company operates in electronics manufacturing services business segment. The Company offers a range of services to its customers, including design and development, engineering services, 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 serve a range of applications, including servers; storage systems; optical equipment; aerospace and defense electronics; healthcare products and applications; semiconductor equipment, and a range of industrial and alternative energy products, including solar panels and inverters. It designs, manufactures and tests solar panels for the residential, commercial and utility scale markets. It uses technologies in the assembly and testing of its products.
About Microsemi Corporation
Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets. Its products include high-performance and radiation-hardened analog mixed-signal integrated circuits (ICs), field programmable gate arrays (FPGAs), system on chip solutions (SoCs) and application-specific integrated circuits (ASICs) and power management products. The Company’s marketed products include Switchtec PFX PCIe switch, Flashtec NVM Express (NVMe)2032 and NVMe2016 controllers, Flashtec NVM Express (NVMe)2108 eight channel and NVMe2104 four channel controllers, PDS-EM-8100 PoE 2.5 gigabits per second (Gbps) Multiplexer, Chip Scale Atomic Clock (CSAC) components and miTimePLL.
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