Plexus (NASDAQ:PLXS – Get Free Report) and Cemtrex (NASDAQ:CETX – Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares Plexus and Cemtrex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Plexus | 4.03% | 12.46% | 5.57% |
| Cemtrex | -38.59% | -129.15% | -45.98% |
Insider and Institutional Ownership
94.5% of Plexus shares are owned by institutional investors. Comparatively, 2.0% of Cemtrex shares are owned by institutional investors. 1.8% of Plexus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Plexus and Cemtrex”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Plexus | $4.03 billion | 1.58 | $172.88 million | $6.78 | 35.21 |
| Cemtrex | $76.49 million | 0.04 | -$28.11 million | ($81.19) | -0.02 |
Plexus has higher revenue and earnings than Cemtrex. Cemtrex is trading at a lower price-to-earnings ratio than Plexus, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Plexus has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Cemtrex has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Plexus and Cemtrex, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Plexus | 0 | 0 | 7 | 1 | 3.12 |
| Cemtrex | 1 | 0 | 0 | 0 | 1.00 |
Plexus presently has a consensus price target of $276.86, suggesting a potential upside of 15.98%. Given Plexus’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Plexus is more favorable than Cemtrex.
Summary
Plexus beats Cemtrex on 13 of the 14 factors compared between the two stocks.
About Plexus
Plexus Corp. provides electronic manufacturing services in the United States and internationally. It offers design, develop, supply chain, new product introduction, and manufacturing solutions, as well as sustaining services to companies in the healthcare/life sciences, industrial/commercial, aerospace/defense, and communications market sectors. The company was founded in 1979 and is headquartered in Neenah, Wisconsin.
About Cemtrex
Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.
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