Head-To-Head Comparison: Celestica (NYSE:CLS) versus Bel Fuse (NASDAQ:BELFB)

Bel Fuse (NASDAQ:BELFB) and Celestica (NYSE:CLS) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Volatility and Risk

Bel Fuse has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Celestica has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Bel Fuse and Celestica, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	2	7	0	2.78
Celestica	0	0	22	1	3.04

Bel Fuse presently has a consensus target price of $324.00, suggesting a potential upside of 30.61%. Celestica has a consensus target price of $447.19, suggesting a potential upside of 25.23%. Given Bel Fuse’s higher possible upside, research analysts clearly believe Bel Fuse is more favorable than Celestica.

Profitability

This table compares Bel Fuse and Celestica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.21%	9.75%	5.23%
Celestica	7.16%	39.96%	11.06%

Valuation and Earnings

This table compares Bel Fuse and Celestica”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$675.46 million	5.30	$61.54 million	$4.14	59.92
Celestica	$12.39 billion	3.31	$832.50 million	$9.62	37.12

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

Institutional and Insider Ownership

58.4% of Bel Fuse shares are owned by institutional investors. Comparatively, 67.4% of Celestica shares are owned by institutional investors. 5.4% of Bel Fuse shares are owned by company insiders. Comparatively, 1.1% of Celestica shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Celestica beats Bel Fuse on 10 of the 15 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.