Comparing Flex (NASDAQ:FLEX) & RF Industries (NASDAQ:RFIL)

Flex (NASDAQ:FLEX) and RF Industries (NASDAQ:RFIL) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

94.3% of Flex shares are owned by institutional investors. Comparatively, 23.5% of RF Industries shares are owned by institutional investors. 0.6% of Flex shares are owned by company insiders. Comparatively, 20.4% of RF Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Flex and RF Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$27.91 billion	1.01	$880.00 million	$2.77	27.64
RF Industries	$80.59 million	1.00	$80,000.00	$0.22	33.80

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Flex and RF Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	1	8	2	3.09
RF Industries	0	2	2	0	2.50

Flex currently has a consensus target price of $138.88, suggesting a potential upside of 81.37%. RF Industries has a consensus target price of $14.50, suggesting a potential upside of 95.02%. Given RF Industries’ higher probable upside, analysts plainly believe RF Industries is more favorable than Flex.

Profitability

This table compares Flex and RF Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex	3.35%	24.93%	5.63%
RF Industries	2.83%	15.32%	7.80%

Risk and Volatility

Flex has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, RF Industries has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Summary

Flex beats RF Industries on 11 of the 15 factors compared between the two stocks.

About Flex

Flex Ltd. is a global manufacturing and supply-chain services company that works with businesses to design, engineer, manufacture and support products. Its services include product development, sourcing, production, logistics and after-market support. The company serves a range of industries, including automotive, healthcare, industrial, lifestyle and communications, as well as cloud and data-center markets. Its work spans products and systems such as medical devices, vehicle components, industrial equipment and technology infrastructure.

About RF Industries

RF Industries Ltd. (NASDAQ: RFIL) designs, manufactures and markets connectivity products used in wireless communications, telecommunications and related electronic infrastructure applications. Its offerings support the installation, connection and distribution of radio-frequency signals across cellular, broadband, public-safety and other communications networks. The company’s products include RF connectors and adapters, coaxial cable assemblies, RF components, power-distribution equipment, cell-site accessories, enclosures and other network-infrastructure products.