Critical Comparison: Bel Fuse (NASDAQ:BELFB) and Celestica (NYSE:CLS)

Celestica (NYSE:CLSGet Free Report) and Bel Fuse (NASDAQ:BELFBGet Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Profitability

This table compares Celestica and Bel Fuse’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celestica 7.16% 39.96% 11.06%
Bel Fuse 7.21% 9.75% 5.23%

Analyst Ratings

This is a summary of current ratings and recommmendations for Celestica and Bel Fuse, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celestica 0 0 23 1 3.04
Bel Fuse 0 2 7 0 2.78

Celestica presently has a consensus target price of $440.50, indicating a potential upside of 27.95%. Bel Fuse has a consensus target price of $324.00, indicating a potential upside of 33.08%. Given Bel Fuse’s higher possible upside, analysts clearly believe Bel Fuse is more favorable than Celestica.

Institutional & Insider Ownership

67.4% of Celestica shares are owned by institutional investors. Comparatively, 58.4% of Bel Fuse shares are owned by institutional investors. 1.1% of Celestica shares are owned by insiders. Comparatively, 5.4% of Bel Fuse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Celestica and Bel Fuse”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celestica $12.39 billion 3.19 $832.50 million $9.62 35.79
Bel Fuse $675.46 million 5.20 $61.54 million $4.14 58.81

Celestica has higher revenue and earnings than Bel Fuse. Celestica is trading at a lower price-to-earnings ratio than Bel Fuse, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Celestica has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Summary

Celestica beats Bel Fuse on 10 of the 15 factors compared between the two stocks.

About Celestica

(Get Free Report)

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.

About Bel Fuse

(Get Free Report)

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

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