Jabil (NYSE: JBL) and AXT (NASDAQ:AXTI) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Volatility and Risk
Jabil has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, AXT has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
99.7% of Jabil shares are owned by institutional investors. Comparatively, 57.8% of AXT shares are owned by institutional investors. 2.6% of Jabil shares are owned by insiders. Comparatively, 6.9% of AXT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Jabil and AXT’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jabil||$19.06 billion||0.26||$129.09 million||$0.58||48.62|
|AXT||$98.67 million||3.18||$10.15 million||$0.26||30.58|
Jabil has higher revenue and earnings than AXT. AXT is trading at a lower price-to-earnings ratio than Jabil, indicating that it is currently the more affordable of the two stocks.
Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. AXT does not pay a dividend. Jabil pays out 55.2% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Jabil and AXT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Jabil currently has a consensus target price of $32.50, suggesting a potential upside of 15.25%. AXT has a consensus target price of $10.42, suggesting a potential upside of 31.03%. Given AXT’s stronger consensus rating and higher possible upside, analysts plainly believe AXT is more favorable than Jabil.
This table compares Jabil and AXT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Jabil Company Profile
Jabil Inc., formerly Jabil Circuit, Inc., provides electronic manufacturing services and solutions throughout the world. The Company operates in two segments, which include Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). The Company’s EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its large scale manufacturing infrastructure and the ability to serve a range of markets. Its DMS segment is focused on providing engineering solutions and a focus on material sciences and technologies. It provides electronic design, production and product management services to companies in the automotive, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, emerging growth, healthcare, industrial and energy, mobility, packaging, point of sale and printing industries.
AXT Company Profile
AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.
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