Analyzing Jabil (JBL) and Benchmark Electronics (BHE)

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

Dividends

Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Benchmark Electronics pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Jabil pays out 17.3% of its earnings in the form of a dividend. Benchmark Electronics pays out 37.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Jabil has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Benchmark Electronics has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Jabil and Benchmark Electronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jabil 2 3 5 0 2.30
Benchmark Electronics 0 1 0 0 2.00

Jabil currently has a consensus price target of $32.86, indicating a potential upside of 16.93%. Given Jabil’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Jabil is more favorable than Benchmark Electronics.

Insider and Institutional Ownership

89.9% of Jabil shares are owned by institutional investors. Comparatively, 94.6% of Benchmark Electronics shares are owned by institutional investors. 2.6% of Jabil shares are owned by company insiders. Comparatively, 0.6% of Benchmark Electronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Jabil and Benchmark Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jabil 0.89% 15.68% 3.18%
Benchmark Electronics -2.80% 5.99% 3.80%

Valuation & Earnings

This table compares Jabil and Benchmark Electronics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jabil $19.06 billion 0.25 $129.09 million $1.85 15.19
Benchmark Electronics $2.47 billion 0.49 -$31.96 million $1.61 16.09

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

Summary

Jabil beats Benchmark Electronics on 11 of the 16 factors compared between the two stocks.

Jabil Company Profile

Jabil Inc. provides electronic manufacturing services and solutions worldwide. The company operates through two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also specializes in three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various industrial design, advance mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, and PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services that include product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company offers systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves automotive and transportation, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, healthcare, industrial and energy, mobility, networking and telecommunications, packaging, point of sale, and printing industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in St. Petersburg, Florida.

Benchmark Electronics Company Profile

Benchmark Electronics, Inc., together with its subsidiaries, provides engineering services, integrated technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company offers engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing, and automation equipment design and build services. It also provides electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, flexible test solutions, environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company offers precision machining, metal joining, and electromechanical manufacturing services; and subsystem and system integration services, including assembly, configuration, and testing of industrial equipment, telecommunication equipment, computers, and related products. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product's life cycle. The company serves original equipment manufacturers of industrial control equipment, telecommunication equipment, and computers and related products for business enterprises, medical devices, and testing and instrumentation products. Benchmark Electronics, Inc. sells its products primarily through direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Scottsdale, Arizona.

Receive News & Ratings for Jabil Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Jabil and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply