SecureAlert (OTCMKTS:TRCK – Get Free Report) and Flex (NASDAQ:FLEX – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Risk & Volatility
SecureAlert has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Flex has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Valuation & Earnings
This table compares SecureAlert and Flex”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SecureAlert | $35.22 million | 0.74 | -$1.88 million | $0.03 | 21.00 |
| Flex | $27.91 billion | 1.68 | $880.00 million | $2.59 | 48.92 |
Flex has higher revenue and earnings than SecureAlert. SecureAlert is trading at a lower price-to-earnings ratio than Flex, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for SecureAlert and Flex, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SecureAlert | 0 | 0 | 0 | 0 | 0.00 |
| Flex | 0 | 2 | 9 | 1 | 2.92 |
Flex has a consensus price target of $114.20, indicating a potential downside of 9.87%. Given Flex’s stronger consensus rating and higher possible upside, analysts clearly believe Flex is more favorable than SecureAlert.
Institutional and Insider Ownership
5.8% of SecureAlert shares are held by institutional investors. Comparatively, 94.3% of Flex shares are held by institutional investors. 45.9% of SecureAlert shares are held by insiders. Comparatively, 0.6% of Flex shares are held 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.
Profitability
This table compares SecureAlert and Flex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SecureAlert | 1.24% | -31.89% | 9.35% |
| Flex | 3.32% | 23.15% | 5.50% |
Summary
Flex beats SecureAlert on 13 of the 15 factors compared between the two stocks.
About SecureAlert
Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.
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.
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