Analyzing Flex (NASDAQ:FLEX) and Tempo Automation (NASDAQ:TMPO)

Flex (NASDAQ:FLEX – Get Rating) and Tempo Automation (NASDAQ:TMPO – Get Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Flex and Tempo Automation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	0	3	0	3.00
Tempo Automation	0	1	2	0	2.67

Flex currently has a consensus target price of $24.33, indicating a potential downside of 4.65%. Tempo Automation has a consensus target price of $3.00, indicating a potential upside of 934.48%. Given Tempo Automation’s higher probable upside, analysts plainly believe Tempo Automation is more favorable than Flex.

Volatility & Risk

Flex has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Tempo Automation has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

95.4% of Flex shares are held by institutional investors. 0.5% of Flex shares are held by company insiders. Comparatively, 34.2% of Tempo Automation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$30.35 billion	0.37	$793.00 million	$1.71	14.92
Tempo Automation	$12.05 million	0.65	-$144.85 million	N/A	N/A

Flex has higher revenue and earnings than Tempo Automation.

Profitability

This table compares Flex and Tempo Automation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex	2.61%	18.83%	4.20%
Tempo Automation	N/A	N/A	-428.46%

Summary

Flex beats Tempo Automation on 9 of the 12 factors compared between the two stocks.

About Flex

(Get Rating)

Flex Ltd. operates as a manufacturing services company. It delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets. The firm operates through the following segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The Flex Agility Solutions segment comprised of Communications, Enterprise and Cloud (CEC) includes data infrastructure, edge infrastructure and communications infrastructure, Lifestyle includes appliances, consumer packaging, floorcare, micro mobility and audio and, Consumer Devices include mobile and high velocity consumer devices. The Flex Reliability Solutions segment comprised of Automotive includes autonomous, connectivity, electrification, and smart technologies, Health Solutions includes medical devices, medical equipment and drug delivery and Industrial includes capital equipment, industrial devices, renewable including Nextracker business, grid edge, and power systems. The company was founded in May 1990 and is headquartered in Singapore.

About Tempo Automation

(Get Rating)

Tempo Automation Holdings, Inc. manufactures electronic products. The company designs and assembles printed circuit boards. It serves automotive, aviation and defense, consumer electronics, design firms, energy, industrial technology, medical device, semiconductor, and space industries. The company was founded in 2013 and is based in San Francisco, California.