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

Valuation and Earnings

This table compares Park Electrochemical and Flex’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Park Electrochemical $114.61 million 3.08 $9.28 million $0.47 37.09
Flex $23.86 billion 0.37 $319.56 million $1.02 16.43

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

Dividends

Park Electrochemical pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. Flex 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.

Volatility & Risk

Park Electrochemical has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Flex has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

83.1% of Park Electrochemical shares are held by institutional investors. Comparatively, 97.7% of Flex shares are held by institutional investors. 8.0% of Park Electrochemical shares are held by insiders. Comparatively, 0.8% of Flex shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Park Electrochemical 4.60% 4.69% 2.78%
Flex 2.15% 20.44% 4.37%

Analyst Ratings

This is a breakdown of recent recommendations for Park Electrochemical and Flex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Electrochemical 0 0 1 0 3.00
Flex 0 2 8 0 2.80

Park Electrochemical currently has a consensus target price of $24.00, indicating a potential upside of 37.69%. Flex has a consensus target price of $20.56, indicating a potential upside of 22.69%. Given Park Electrochemical’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Park Electrochemical is more favorable than Flex.

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.

Flex Company Profile

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.

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