Head to Head Contrast: Flex (NASDAQ:FLEX) and NOVONIX (NASDAQ:NVX)

Flex (NASDAQ:FLEX) and NOVONIX (NASDAQ:NVX) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Insider and Institutional Ownership

94.3% of Flex shares are held by institutional investors. Comparatively, 0.1% of NOVONIX shares are held by institutional investors. 0.6% of Flex shares are held by insiders. Comparatively, 23.7% of NOVONIX shares are held by 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Flex and NOVONIX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	1	7	0	2.88
NOVONIX	0	0	0	0	0.00

Flex presently has a consensus price target of $57.29, suggesting a potential downside of 1.38%. Given Flex’s stronger consensus rating and higher probable upside, equities analysts plainly believe Flex is more favorable than NOVONIX.

Earnings & Valuation

This table compares Flex and NOVONIX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$25.81 billion	0.84	$838.00 million	$2.28	25.48
NOVONIX	$5.93 million	37.03	-$74.82 million	N/A	N/A

Flex has higher revenue and earnings than NOVONIX.

Profitability

This table compares Flex and NOVONIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex	3.42%	20.25%	5.47%
NOVONIX	N/A	N/A	N/A

Volatility and Risk

Flex has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, NOVONIX has a beta of 2.59, suggesting that its stock price is 159% more volatile than the S&P 500.

Summary

Flex beats NOVONIX on 9 of the 12 factors compared between the two stocks.

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.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.