Reviewing Celestica (CLS) and Its Rivals

Celestica (NYSE:CLS) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its rivals? We will compare Celestica to related businesses based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

67.4% of Celestica shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 1.1% of Celestica shares are owned by company insiders. Comparatively, 16.0% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Celestica has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, Celestica’s rivals have a beta of -0.29, indicating that their average stock price is 129% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Celestica and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	1	21	2	3.04
Celestica Competitors	2049	7616	10449	665	2.47

Celestica presently has a consensus price target of $453.32, indicating a potential upside of 119.24%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 39.16%. Given Celestica’s stronger consensus rating and higher possible upside, research analysts clearly believe Celestica is more favorable than its rivals.

Earnings and Valuation

This table compares Celestica and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Celestica	$12.39 billion	$832.50 million	19.56
Celestica Competitors	$114.96 billion	$172.92 million	4.77

Celestica’s rivals have higher revenue, but lower earnings than Celestica. Celestica is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Celestica and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celestica	6.83%	33.80%	10.88%
Celestica Competitors	-141.19%	-31.04%	-7.22%

Summary

Celestica beats its rivals on 11 of the 13 factors compared.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.