Head-To-Head Analysis: Plexus (PLXS) and SigmaTron International (SGMA)
Plexus (NASDAQ:PLXS) and SigmaTron International (NASDAQ:SGMA) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
This table compares Plexus and SigmaTron International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Plexus has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, SigmaTron International has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
This is a summary of current recommendations for Plexus and SigmaTron International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Plexus presently has a consensus price target of $70.00, indicating a potential upside of 19.88%. Given Plexus’ higher possible upside, analysts clearly believe Plexus is more favorable than SigmaTron International.
Earnings & Valuation
This table compares Plexus and SigmaTron International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Plexus||$2.87 billion||0.65||$13.04 million||$3.23||18.08|
|SigmaTron International||$278.13 million||0.06||-$3.24 million||N/A||N/A|
Plexus has higher revenue and earnings than SigmaTron International.
Institutional and Insider Ownership
95.5% of Plexus shares are held by institutional investors. Comparatively, 28.9% of SigmaTron International shares are held by institutional investors. 3.7% of Plexus shares are held by insiders. Comparatively, 8.2% of SigmaTron International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Plexus beats SigmaTron International on 10 of the 12 factors compared between the two stocks.
Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers product conceptualization solutions; and product design and value-engineering solutions, including program management, feasibility studies, specification development for product features and functionality, circuit design, field programmable gate array design, printed circuit board layout, embedded software design, mechanical design, test specifications development and product verification testing, and automated production solutions and complex automation design. The company also provides commercialization solutions, such as prototyping, new product introduction, design for supply chain, test development, and transition management; manufacturing solutions; and fulfillment and logistics solutions. In addition, it offers sustaining solutions, which include aftermarket services, such as screening, loaner program, part harvesting, in/out warranty repair, advanced exchange, part repair, upgrade, demo unit management, warranty redemption, refurbishment, recycling, part fulfillment, decontamination, destruction, part fulfillment with warranty redemption, complaint handling, and part sales. The company provides its solutions to companies in the networking/communications, healthcare/life sciences, industrial/commercial, and defense/security/aerospace sectors. Plexus Corp. was founded in 1979 and is headquartered in Neenah, Wisconsin.
About SigmaTron International
SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS). Its EMS services include the production of printed circuit board assemblies and completely assembled (box-build) electronic products. The company also offers automatic and manual assembly, and testing of products; material sourcing and procurement services; manufacturing and test engineering support services; design services; warehousing and distribution services; and assistance in obtaining product approval from governmental and other regulatory bodies. It primarily serves customers operating in the industrial electronics, consumer electronics, and medical/life sciences industries in the United States, Mexico, China, Vietnam, and Taiwan. The company markets its services through independent manufacturers' representative organizations. SigmaTron International, Inc. was founded in 1993 and is headquartered in Elk Grove Village, Illinois.
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