Head to Head Analysis: Taitron Components (NASDAQ:TAIT) & Celestica (NYSE:CLS)

Celestica (NYSE:CLS) and Taitron Components (NASDAQ:TAIT) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares Celestica and Taitron Components”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$12.39 billion	2.57	$832.50 million	$9.62	28.80
Taitron Components	$3.54 million	3.47	$900,000.00	$0.07	29.18

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

Insider & Institutional Ownership

67.4% of Celestica shares are owned by institutional investors. Comparatively, 18.1% of Taitron Components shares are owned by institutional investors. 1.1% of Celestica shares are owned by company insiders. Comparatively, 60.0% of Taitron Components shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Celestica has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Taitron Components has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Celestica and Taitron Components, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	1	21	1	3.00
Taitron Components	1	0	0	0	1.00

Celestica presently has a consensus price target of $439.81, indicating a potential upside of 58.75%. Given Celestica’s stronger consensus rating and higher probable upside, equities analysts plainly believe Celestica is more favorable than Taitron Components.

Profitability

This table compares Celestica and Taitron Components’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celestica	7.16%	39.96%	11.06%
Taitron Components	-27.42%	-6.18%	-5.66%

Summary

Celestica beats Taitron Components on 13 of the 15 factors compared between the two stocks.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

About Taitron Components

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.