Jabil vs Flex Which Is More Favorable?

Jabil and Flex are two leading companies in the electronics manufacturing services industry that are frequently compared by investors. Both companies provide a range of services including design, manufacturing, and supply chain solutions for a variety of industries. Jabil and Flex have both experienced growth in recent years, with each company having their own strengths and weaknesses. Investors often debate which company is the better investment option, considering factors such as financial performance, market positioning, and potential for future growth.

Jabil or Flex?

When comparing Jabil and Flex, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Jabil and Flex.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Jabil has a dividend yield of 0.24%, while Flex has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Jabil reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.03%. On the other hand, Flex reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Jabil P/E ratio at 11.21 and Flex's P/E ratio at 16.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Jabil P/B ratio is 8.95 while Flex's P/B ratio is 3.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Jabil has seen a 5-year revenue growth of 1.03%, while Flex's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jabil's ROE at 60.31% and Flex's ROE at 17.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $133.40 for Jabil and $37.99 for Flex. Over the past year, Jabil's prices ranged from $95.85 to $156.94, with a yearly change of 63.74%. Flex's prices fluctuated between $21.30 and $42.47, with a yearly change of 99.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.