Head to Head Analysis: InvenSense (INVN) versus Flextronics International (FLEX)

InvenSense (NYSE: INVN) and Flextronics International (NASDAQ:FLEX) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Valuation & Earnings

This table compares InvenSense and Flextronics International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
InvenSense N/A N/A N/A ($0.58) -22.40
Flextronics International $23.99 billion 0.40 $1.22 billion $1.01 17.63

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

Profitability

This table compares InvenSense and Flextronics International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InvenSense -20.65% -18.29% -11.24%
Flextronics International 2.25% 23.05% 4.88%

Analyst Ratings

This is a breakdown of recent ratings and price targets for InvenSense and Flextronics International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InvenSense 0 4 2 0 2.33
Flextronics International 0 2 8 0 2.80

InvenSense currently has a consensus price target of $11.33, indicating a potential downside of 12.75%. Flextronics International has a consensus price target of $19.19, indicating a potential upside of 7.73%. Given Flextronics International’s stronger consensus rating and higher possible upside, analysts clearly believe Flextronics International is more favorable than InvenSense.

Institutional and Insider Ownership

46.5% of InvenSense shares are owned by institutional investors. Comparatively, 94.5% of Flextronics International shares are owned by institutional investors. 14.2% of InvenSense shares are owned by company insiders. Comparatively, 0.8% of Flextronics International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

InvenSense has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500. Comparatively, Flextronics International has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Summary

Flextronics International beats InvenSense on 9 of the 11 factors compared between the two stocks.

InvenSense Company Profile

InvenSense, Inc. (InvenSense) is engaged in designing, developing, marketing and selling of sensor system-on-chip (SoC), including accelerometers, gyroscopes and microphones for the mobile, wearable, smart home, gaming, industrial and automotive market segments. The Company delivers solutions based on its motion and sound technology; focused on solutions, such as smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. Its motion solutions detect and track an object’s motion in three-dimensional space.

Flextronics International Company Profile

Flex Ltd, formerly Flextronics International Ltd. provides design, engineering, manufacturing, and supply chain services and solutions. The Company designs, builds, ships and services packaged consumer electronics and industrial products for original equipment manufacturers (OEMs). Its segments include High Reliability Solutions (HRS), Consumer Technologies Group (CTG), Industrial and Emerging Industries (IEI) and Communications & Enterprise Compute (CEC). The HRS segment consists of its medical business, automotive business, and defense and aerospace businesses. The CTG segment includes its mobile devices business, consumer electronics business and high-volume computing business. The IEI segment consists of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting. The CEC segment includes radio access base stations, remote radio heads, and small cells for wireless infrastructure.

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