Flex (NASDAQ:FLEX – Get Free Report) and Mistras Group (NYSE:MG – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Volatility & Risk
Flex has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Mistras Group has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Profitability
This table compares Flex and Mistras Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flex | 3.33% | 20.86% | 5.57% |
| Mistras Group | 2.55% | 13.10% | 4.97% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flex | $25.81 billion | 0.91 | $838.00 million | $2.26 | 28.02 |
| Mistras Group | $729.64 million | 0.57 | $18.96 million | $0.58 | 22.68 |
Flex has higher revenue and earnings than Mistras Group. Mistras Group 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 owned by institutional investors. Comparatively, 74.9% of Mistras Group shares are owned by institutional investors. 0.6% of Flex shares are owned by company insiders. Comparatively, 4.8% of Mistras Group 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 Ratings
This is a breakdown of current ratings and price targets for Flex and Mistras Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flex | 0 | 2 | 7 | 1 | 2.90 |
| Mistras Group | 0 | 1 | 0 | 0 | 2.00 |
Flex currently has a consensus target price of $65.88, indicating a potential upside of 4.02%. Mistras Group has a consensus target price of $16.00, indicating a potential upside of 21.63%. Given Mistras Group’s higher possible upside, analysts clearly believe Mistras Group is more favorable than Flex.
Summary
Flex beats Mistras Group on 13 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 Mistras Group
Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.
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