Financial Contrast: Erayak Power Solution Group (NASDAQ:RAYA) and Flex (NASDAQ:FLEX)

Erayak Power Solution Group (NASDAQ:RAYA) and Flex (NASDAQ:FLEX) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for Erayak Power Solution Group and Flex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Erayak Power Solution Group	1	0	0	0	1.00
Flex	0	2	7	1	2.90

Flex has a consensus price target of $65.75, suggesting a potential upside of 11.22%. Given Flex’s stronger consensus rating and higher possible upside, analysts clearly believe Flex is more favorable than Erayak Power Solution Group.

Volatility and Risk

Erayak Power Solution Group has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Erayak Power Solution Group and Flex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Erayak Power Solution Group	$30.30 million	0.11	-$1.12 million	N/A	N/A
Flex	$25.81 billion	0.85	$838.00 million	$2.26	26.16

Flex has higher revenue and earnings than Erayak Power Solution Group.

Profitability

This table compares Erayak Power Solution Group and Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Erayak Power Solution Group	N/A	N/A	N/A
Flex	3.33%	20.86%	5.57%

Insider and Institutional Ownership

0.3% of Erayak Power Solution Group shares are owned by institutional investors. Comparatively, 94.3% of Flex shares are owned by institutional investors. 0.6% of Flex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Flex beats Erayak Power Solution Group on 13 of the 13 factors compared between the two stocks.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.

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.