Sanmina (NASDAQ: SANM) and RadiSys (NASDAQ:RSYS) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
This table compares Sanmina and RadiSys’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sanmina has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, RadiSys has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Sanmina and RadiSys, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sanmina currently has a consensus price target of $37.25, indicating a potential upside of 31.63%. RadiSys has a consensus price target of $3.60, indicating a potential upside of 386.49%. Given RadiSys’ stronger consensus rating and higher probable upside, analysts plainly believe RadiSys is more favorable than Sanmina.
Valuation and Earnings
This table compares Sanmina and RadiSys’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sanmina||$6.87 billion||0.29||$138.83 million||($0.95)||-29.79|
|RadiSys||$133.77 million||0.22||-$52.60 million||($1.34)||-0.55|
Sanmina has higher revenue and earnings than RadiSys. Sanmina is trading at a lower price-to-earnings ratio than RadiSys, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.6% of Sanmina shares are held by institutional investors. Comparatively, 38.6% of RadiSys shares are held by institutional investors. 5.1% of Sanmina shares are held by insiders. Comparatively, 6.1% of RadiSys shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Sanmina beats RadiSys on 8 of the 14 factors compared between the two stocks.
Sanmina Company Profile
Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.
RadiSys Company Profile
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.
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