Head-To-Head Review: Flex (NASDAQ:FLEX) & Syntec Optics (NASDAQ:OPTX)

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

Institutional and Insider Ownership

94.3% of Flex shares are held by institutional investors. 0.6% of Flex shares are held by company insiders. Comparatively, 0.8% of Syntec Optics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Flex and Syntec Optics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex	3.32%	23.15%	5.50%
Syntec Optics	-8.26%	-16.50%	-8.68%

Valuation & Earnings

This table compares Flex and Syntec Optics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$27.91 billion	1.45	$880.00 million	$2.59	42.28
Syntec Optics	$28.08 million	10.86	-$1.79 million	($0.06)	-126.17

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Flex and Syntec Optics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	2	9	1	2.92
Syntec Optics	1	0	0	0	1.00

Flex currently has a consensus price target of $114.20, indicating a potential upside of 4.28%. Given Flex’s stronger consensus rating and higher possible upside, equities analysts plainly believe Flex is more favorable than Syntec Optics.

Risk and Volatility

Flex has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Syntec Optics has a beta of -0.77, suggesting that its share price is 177% less volatile than the S&P 500.

Summary

Flex beats Syntec Optics 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 Syntec Optics

Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.