Analyzing Flex (NASDAQ:FLEX) & Nortech Systems (NASDAQ:NSYS)

Flex (NASDAQ:FLEX) and Nortech Systems (NASDAQ:NSYS) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Earnings & Valuation

This table compares Flex and Nortech Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$27.91 billion	1.43	$880.00 million	$2.59	41.70
Nortech Systems	$118.36 million	0.28	-$250,000.00	$0.36	32.08

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

Institutional & Insider Ownership

94.3% of Flex shares are held by institutional investors. Comparatively, 3.0% of Nortech Systems shares are held by institutional investors. 0.6% of Flex shares are held by insiders. Comparatively, 12.4% of Nortech Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Flex and Nortech Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	2	9	1	2.92
Nortech Systems	0	1	0	0	2.00

Flex presently has a consensus price target of $114.20, indicating a potential upside of 5.74%. Given Flex’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Flex is more favorable than Nortech Systems.

Risk and Volatility

Flex has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Nortech Systems has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500.

Profitability

This table compares Flex and Nortech Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex	3.32%	23.15%	5.50%
Nortech Systems	0.83%	3.01%	1.36%

Summary

Flex beats Nortech Systems on 14 of the 15 factors compared between the two stocks.

About Flex

Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.

About Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.