Celestica (NYSE:CLS) versus Taitron Components (NASDAQ:TAIT) Financial Contrast

Celestica (NYSE:CLS) and Taitron Components (NASDAQ:TAIT) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$12.39 billion	2.57	$832.50 million	$9.62	28.80
Taitron Components	$3.54 million	3.47	$900,000.00	$0.07	29.18

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Celestica and Taitron Components, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	1	21	1	3.00
Taitron Components	1	0	0	0	1.00

Celestica presently has a consensus price target of $439.81, suggesting a potential upside of 58.75%. Given Celestica’s stronger consensus rating and higher possible upside, analysts clearly believe Celestica is more favorable than Taitron Components.

Insider & Institutional Ownership

67.4% of Celestica shares are held by institutional investors. Comparatively, 18.1% of Taitron Components shares are held by institutional investors. 1.1% of Celestica shares are held by insiders. Comparatively, 60.0% of Taitron Components shares are held by 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.

Profitability

This table compares Celestica and Taitron Components’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celestica	7.16%	39.96%	11.06%
Taitron Components	-27.42%	-6.18%	-5.66%

Risk and Volatility

Celestica has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Taitron Components has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Summary

Celestica beats Taitron Components on 13 of the 15 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 Taitron Components

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.