Contrasting Plexus (NASDAQ:PLXS) and IEC Electronics (NASDAQ:IEC)

Plexus (NASDAQ:PLXS) and IEC Electronics (NASDAQ:IEC) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Insider and Institutional Ownership

95.3% of Plexus shares are owned by institutional investors. Comparatively, 33.8% of IEC Electronics shares are owned by institutional investors. 3.2% of Plexus shares are owned by company insiders. Comparatively, 6.1% of IEC Electronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Plexus and IEC Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plexus 0 1 4 0 2.80
IEC Electronics 0 0 2 0 3.00

Plexus presently has a consensus target price of $75.00, indicating a potential upside of 8.10%. IEC Electronics has a consensus target price of $10.25, indicating a potential upside of 6.44%. Given Plexus’ higher possible upside, analysts clearly believe Plexus is more favorable than IEC Electronics.

Risk & Volatility

Plexus has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, IEC Electronics has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Plexus and IEC Electronics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Plexus $3.16 billion 0.64 $108.62 million $3.43 20.23
IEC Electronics $156.98 million 0.64 $4.75 million N/A N/A

Plexus has higher revenue and earnings than IEC Electronics.

Profitability

This table compares Plexus and IEC Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plexus 3.27% 11.45% 4.91%
IEC Electronics 3.30% 20.36% 5.85%

Summary

IEC Electronics beats Plexus on 7 of the 13 factors compared between the two stocks.

Plexus Company Profile

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers design and development, supply chain, new product introduction, and manufacturing solutions, as well as aftermarket services. The company provides its solutions to companies in the healthcare and life sciences, industrial and commercial, communications, and aerospace and defense sectors. Plexus Corp. was founded in 1979 and is headquartered in Neenah, Wisconsin.

IEC Electronics Company Profile

IEC Electronics Corp., together with its subsidiaries, provides electronic manufacturing services in the United States. It specializes in delivering technical solutions for the custom manufacturing, product configuration, and verification testing of engineered complex products that require a level of manufacturing. The company manufactures a range of assemblies that are incorporated into various products, such as aerospace and defense systems, medical devices, industrial equipment, and transportation products. It serves medical, industrial, aerospace, and defense sectors through a direct sales force, as well as through a network of manufacturer's representatives. The company was founded in 1966 and is headquartered in Newark, New York.

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