Plexus (NASDAQ:PLXS – Get Free Report) and Cemtrex (NASDAQ:CETX – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Institutional and Insider Ownership
94.5% of Plexus shares are held by institutional investors. Comparatively, 2.0% of Cemtrex shares are held by institutional investors. 1.8% of Plexus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Plexus and Cemtrex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Plexus | 4.03% | 12.46% | 5.57% |
| Cemtrex | -38.59% | -129.15% | -45.98% |
Valuation & Earnings
This table compares Plexus and Cemtrex”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Plexus | $4.03 billion | 1.58 | $172.88 million | $6.78 | 35.21 |
| Cemtrex | $76.49 million | 0.04 | -$28.11 million | ($81.19) | -0.02 |
Plexus has higher revenue and earnings than Cemtrex. Cemtrex is trading at a lower price-to-earnings ratio than Plexus, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Plexus and Cemtrex, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Plexus | 0 | 0 | 7 | 1 | 3.12 |
| Cemtrex | 1 | 0 | 0 | 0 | 1.00 |
Plexus presently has a consensus price target of $276.86, suggesting a potential upside of 15.98%. Given Plexus’ stronger consensus rating and higher possible upside, research analysts clearly believe Plexus is more favorable than Cemtrex.
Risk and Volatility
Plexus has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Cemtrex has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.
Summary
Plexus beats Cemtrex on 13 of the 14 factors compared between the two stocks.
About Plexus
Plexus Corp. provides electronic manufacturing services in the United States and internationally. It offers design, develop, supply chain, new product introduction, and manufacturing solutions, as well as sustaining services to companies in the healthcare/life sciences, industrial/commercial, aerospace/defense, and communications market sectors. The company was founded in 1979 and is headquartered in Neenah, Wisconsin.
About Cemtrex
Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.
Receive News & Ratings for Plexus Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Plexus and related companies with MarketBeat.com's FREE daily email newsletter.
