Critical Contrast: Celestica (NYSE:CLS) vs. Hexagon (OTCMKTS:HXGBY)

Celestica (NYSE:CLS) and Hexagon (OTCMKTS:HXGBY) are both large-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Celestica	7.16%	39.96%	11.06%
Hexagon	11.66%	10.21%	6.22%

Risk & Volatility

Celestica has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Hexagon has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Celestica and Hexagon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	1	24	0	2.96
Hexagon	1	2	1	0	2.00

Celestica currently has a consensus price target of $448.30, suggesting a potential upside of 72.35%. Given Celestica’s stronger consensus rating and higher probable upside, equities analysts clearly believe Celestica is more favorable than Hexagon.

Earnings & Valuation

This table compares Celestica and Hexagon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$15.59 billion	1.92	$832.50 million	$9.62	27.04
Hexagon	$6.14 billion	4.64	$698.53 million	$0.24	44.17

Celestica has higher revenue and earnings than Hexagon. Celestica is trading at a lower price-to-earnings ratio than Hexagon, 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. 1.1% of Celestica shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Celestica beats Hexagon 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 Hexagon

Hexagon AB (publ) provides geospatial and industrial enterprise solutions worldwide. The company offers analysis and management, machine control, embedded electronics, monitoring, and planning and optimization solutions to agriculture division; 3D design and visualization, enterprise asset and asset lifecycle management, OT/ICS cyber security, engineering and schematics, enterprise project performance, operation and maintenance, procurement, fabrication, and construction services for asset lifecycle intelligence division; GNSS and SMART antennas, anti-jam systems, autonomy kits and services, correction services, GNSS/INS receivers and post processing, resilience and integrity technology, and visualization software for autonomy and positioning division; and 3D surveillance, AEC and survey software, geospatial content, machine control, digital realities platform, laser scanning and measurement tools, levels, total stations, airborne, monitoring, document and verification solutions, detection, GNSS, and mobile mapping system to geosystem division. It also provides CAD CAM and CAE software, CNC simulation and computed tomography software, measurement and inspection hardware and software, manufacturing project management, digital transformation for manufacturing, environmental health and safety, and quality management systems to manufacturing intelligence division; and HxGN mine protect, operate, monitoring, measure, and plan services, as well as HxGN autonomous and underground mining services to mining division. In addition, the company offers GIS, imagery analysis and data management, collaboration, government, transportation, and defense solutions; and utility GIS and outage management services, and public safety and geospatial platform to safety, infrastructure, and geospatial division. The company was incorporated in 1975 and is based in Stockholm, Sweden.