Comparing Kimball Electronics (KE) and Plexus (PLXS)

Kimball Electronics (NASDAQ: KE) and Plexus (NASDAQ:PLXS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

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This table compares Kimball Electronics and Plexus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball Electronics 1.66% 9.65% 5.86%
Plexus -0.57% 11.24% 5.81%

Insider & Institutional Ownership

59.0% of Kimball Electronics shares are owned by institutional investors. Comparatively, 97.0% of Plexus shares are owned by institutional investors. 3.9% of Kimball Electronics shares are owned by company insiders. Comparatively, 3.7% of Plexus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Kimball Electronics has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Plexus has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kimball Electronics and Plexus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimball Electronics $930.91 million 0.48 $34.17 million N/A N/A
Plexus $2.53 billion 0.83 $112.06 million $3.24 19.23

Plexus has higher revenue and earnings than Kimball Electronics.

Analyst Ratings

This is a summary of current recommendations for Kimball Electronics and Plexus, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball Electronics 0 0 0 0 N/A
Plexus 0 4 1 0 2.20

Plexus has a consensus target price of $60.75, suggesting a potential downside of 2.47%. Given Plexus’ higher possible upside, analysts plainly believe Plexus is more favorable than Kimball Electronics.

Summary

Plexus beats Kimball Electronics on 8 of the 12 factors compared between the two stocks.

Kimball Electronics Company Profile

Kimball Electronics, Inc., a contract electronic manufacturing services company, engages in producing durable electronics for the automotive, medical, industrial, and public safety markets primarily in the United States, China, Mexico, Poland, Romania, and Thailand. Its engineering, manufacturing, and supply chain services include design services; rapid prototyping and new product introduction support; production and testing of printed circuit board assemblies; industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing; assembly, production, and packaging of other related non-electronic products; supply chain services; and product life cycle management services. The company was founded in 1961 and is headquartered in Jasper, Indiana.

Plexus Company Profile

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers product conceptualization solutions; and product design and value-engineering solutions, including program management, feasibility studies, specification development for product features and functionality, circuit design, field programmable gate array design, printed circuit board layout, embedded software design, mechanical design, test specifications development and product verification testing, and automated production solutions and complex automation design. The company also provides commercialization solutions, such as prototyping, new product introduction, design for supply chain, test development, and transition management; manufacturing solutions; and fulfillment and logistics solutions. In addition, it offers sustaining solutions, which include aftermarket services, such as screening, loaner program, part harvesting, in/out warranty repair, advanced exchange, part repair, upgrade, demo unit management, warranty redemption, refurbishment, recycling, part fulfillment, decontamination, destruction, part fulfillment with warranty redemption, complaint handling, and part sales. The company provides its solutions to companies in the networking/communications, healthcare/life sciences, industrial/commercial, and defense/security/aerospace sectors. Plexus Corp. was founded in 1979 and is headquartered in Neenah, Wisconsin.

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