Advanced Energy Industries (NASDAQ: AEIS) and Sanmina (NASDAQ:SANM) are both mid-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Insider and Institutional Ownership
94.3% of Advanced Energy Industries shares are owned by institutional investors. Comparatively, 92.5% of Sanmina shares are owned by institutional investors. 1.1% of Advanced Energy Industries shares are owned by insiders. Comparatively, 5.0% of Sanmina shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for Advanced Energy Industries and Sanmina, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Energy Industries||0||3||3||0||2.50|
Advanced Energy Industries currently has a consensus price target of $83.00, suggesting a potential upside of 16.52%. Sanmina has a consensus price target of $44.33, suggesting a potential upside of 29.06%. Given Sanmina’s higher possible upside, analysts plainly believe Sanmina is more favorable than Advanced Energy Industries.
Valuation & Earnings
This table compares Advanced Energy Industries and Sanmina’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Energy Industries||$483.70 million||5.84||$127.45 million||$5.12||13.91|
|Sanmina||$6.87 billion||0.36||$138.83 million||$1.78||19.30|
Sanmina has higher revenue and earnings than Advanced Energy Industries. Advanced Energy Industries is trading at a lower price-to-earnings ratio than Sanmina, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Advanced Energy Industries has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Sanmina has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
This table compares Advanced Energy Industries and Sanmina’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Energy Industries||33.76%||35.56%||25.61%|
Advanced Energy Industries beats Sanmina on 9 of the 14 factors compared between the two stocks.
About Advanced Energy Industries
Advanced Energy Industries, Inc. is a provider of engineered, precision power conversion, measurement and control solutions. The Company is engaged in designing, manufacturing, selling and supporting its power conversion products and solutions that transform power into various forms in various applications ranging from manufacturing and industrial processes to instrumentation, and test and measurement. It also provides repair and maintenance services for all of its products. Its process power systems include direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, matching networks, remote plasma sources for reactive gas applications and RF instrumentation. These power conversion systems refine, modify and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Its power control modules and thermal instrumentation products are used in the semiconductor industry.
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.
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