Critical Contrast: Celestica (NYSE:CLS) versus A2Z Cust2Mate Solutions (NASDAQ:AZ)

Celestica (NYSE:CLS) and A2Z Cust2Mate Solutions (NASDAQ:AZ) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Volatility and Risk

Celestica has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, A2Z Cust2Mate Solutions has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares Celestica and A2Z Cust2Mate Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$12.39 billion	2.10	$832.50 million	$10.57	19.56
A2Z Cust2Mate Solutions	$7.90 million	34.62	-$37.74 million	($0.83)	-7.40

Celestica has higher revenue and earnings than A2Z Cust2Mate Solutions. A2Z Cust2Mate Solutions is trading at a lower price-to-earnings ratio than Celestica, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

67.4% of Celestica shares are held by institutional investors. Comparatively, 12.6% of A2Z Cust2Mate Solutions shares are held by institutional investors. 1.1% of Celestica shares are held by company insiders. Comparatively, 27.9% of A2Z Cust2Mate Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Celestica and A2Z Cust2Mate Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	1	21	2	3.04
A2Z Cust2Mate Solutions	1	1	2	0	2.25

Celestica presently has a consensus target price of $453.32, suggesting a potential upside of 119.24%. A2Z Cust2Mate Solutions has a consensus target price of $15.00, suggesting a potential upside of 144.30%. Given A2Z Cust2Mate Solutions’ higher possible upside, analysts plainly believe A2Z Cust2Mate Solutions is more favorable than Celestica.

Profitability

This table compares Celestica and A2Z Cust2Mate Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celestica	6.83%	33.80%	10.88%
A2Z Cust2Mate Solutions	-241.67%	-49.91%	-43.81%

Summary

Celestica beats A2Z Cust2Mate Solutions on 11 of the 14 factors compared between the two stocks.

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.

About A2Z Cust2Mate Solutions

A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point. The company also manufactures and sells precision metal parts; provides retail automation solutions; and develops Fuel Tank Inertia Capsule System technology (FTICS), a vehicle device cover for the military and civilian automotive industry. In addition, it provides maintenance services utilizing the application of advanced engineering capabilities to the military and security markets, as well as develops related products for the civilian and retail markets; container leasing services; and maintenance services for complex electronic systems and products. It serves its products to grocery stores, hardware stores, household essentials, do it yourself (DIY) retailers, discount stores, warehouse stores, convenience stores, drug stores, duty free shops, and similar outlets. The company is headquartered in Vancouver, Canada.